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As GLP1 weight-loss drug adoption grows 12–15% of U.S. adults are currently or planning to use them—food, wellness and fashion brands are pivoting to address new consumer priorities. 

Today, we are going to focus on fashion brands. 

Retailers looking to appeal to this demographic, are focusing on: 

Advantages for consumers undergoing weight loss include flexible sizing, minimal friction in updating preferences, and stylist-walkthrough during size transitions. 

According to the data, 45% of consumers experience extra stress when navigating significant size changes. 

We believe that online retailers have an advantage as they position themselves to serve thinner consumers. 

Some of these publicly traded companies are: 

American Eagle Outfitters (NYSE: AEO) who recently launched a high-profile campaign for jeans. 

The TJX Companies (NYSE: TJX), parent of off-price chains like TJ Maxx, Marshalls, Nordstrom Rack. Their flexible sizing model benefits budget-conscious consumers transitioning between sizes  

Plus, Walmart (NYSE: WMT), Target (NYSE: TGT), Costco (Nasdaq: COST) are all expanding private-label offerings and value-based products, appealing to the thinner consumer. 

I like the charts of AEO and TJX in particular. 

Today, I am featuring Stitch Fix SFIX.  

Stitch Fix is positioning itself to serve thinner consumers, including those losing weight rapidly—by: 

• Ensuring their style quiz and profile mechanisms can be updated easily with current size data 
• Leveraging AI to process profile changes, and human stylists to interpret and respond with curated selections 
• Maintaining inclusive sizing infrastructure that supports transitions from plus into straight-size ranges or petite 

As consumers lose weight and their body dimensions change, Stitch Fix clients benefit from smartly curated wardrobe updates without needing to shop store-by-store. 

I particularly like that clients have shared positive feedback with TikTok videos and testimonials describing how Stitch Fix supported their body transformations and wardrobe evolution. 

Let’s look at the chart. 

In a bullish phase, SFIX still has a slight bearish divergence in momentum. 

Note that the 200 (green) moving average is still above the 50-DMA (blue). While the red dots are above both the MAs, they only briefly cleared the Bollinger band. 

While this is not a deal breaker, it does mean that this stock has potential should momentum kick in. 

The price of SFIX is well above the July 6-month calendar range high (green horizontal line). 

Look at the January calendar range high just left to the July one. 

This year, SFIX reached a high of 5.60, which is now the price to clear. 

SFIX is also outperforming the benchmark according to the leadership indicator. 

As many of you who follow me know, I have been keen on the diet drug craze and the impact on retailers of all kinds that are joining in this megatrend.  

SFIX traded at an all-time high of $113.76 in 2021 at the height of Covid. 

Now, online shoppers have a new reason to get excited about this retail name.  

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