Americans are dressing up. This doesn’t necessarily mean that all clothing retailers will be able to benefit from the post-pandemic wardrobe changes.

Stitch FixThe latest example is this. The shares of the company are expected to trade at an all-time low Tuesday morning if they do not fall below $10.29.

On Tuesday evening, the company revealed its results. bleak outlook for its fiscal third quarterStitch Fix chief executive Elizabeth Spaulding attempted to persuade analysts that while the company had lowered its full-year forecast, it still has a long-term strategy.

Spaulding revealed that Stitch Fix was having difficulty attracting new customers during the three-month period. Fixes allow for customized boxes of clothing, accessories, and delivery to their home. However, investors and analysts are more concerned by the recent introduction of Freestyle (a direct-buy option), which has not resulted in as many Stitch Fix customers.

Spaulding stated that they are still learning the best way to take on Freestyle clients, and acknowledged the need to improve the Freestyle experience.

Spaulding was only a year ago. took over the reigns as CEO from Stitch Fix founder Katrina Lake last August. She has been leading the new initiatives of the company, such as the Freestyle rollout to attract new customers.

Spaulding’s and Spaulding’s team’s performance in executing those initiatives is being questioned by analysts.

Simeon Siegel, analyst at BMO Capital Markets noted that Stitch Fix has made significant investments in Freestyle. This is far from the original mission of Stitch Fix to sell curated clothing boxes on a monthly basis. It was “new” and very different when it first launched.

Siegel stated, “At its core, Freestyle’s push is an effort to make everyday retail more efficient.” The company’s ability to execute will determine whether or not it succeeds. Freestyle is the best version of what people shop already.

Truist Securities downgraded Stitch Fix stock from buy to hold on Tuesday night. In a note sent to clients, analyst Youssef squali stated that the execution of management so far appears challenged. He said that Stitch Fix does not have any information on how fast the negative trends can reverse. Truist has reduced its price target from $40 to $12

Telsey Advisory Group lowered its price goal to $14 instead of $25. It has dropped its market-perform rating to Market Perform.

“While we anticipated [Freestyle]To expand the company’s reachable market and to drive incremental revenue, it was difficult to roll it out without adding friction to onboarding new Fix customers,” Dana Telsey said, chief executive officer, chief research officer.

Stitch Fix reported Tuesday that its fiscal year ends July 30. It expects revenues to remain flat to slightly below last year. Based on Refinitiv estimates, analysts expected revenue to rise by 8.1%.

—CNBC’s Michael Bloom contributed to this reporting.

This is a developing story. Keep checking back for more updates.