Styling service's future growth is in doubt as Stitch Fix stock hits all-time low.

• On Tuesday, Stitch Fix disclosed a pessimistic outlook for its fiscal third quarter and reduced its full-year forecast.
• During a conference call, Elizabeth Spaulding, the Chief Executive, attempted to persuade analysts that the company's long-term strategy is still intact.
• Despite this, investors remain uncertain and send the stock to a new low.

Although Americans are resuming their fashion choices, not all apparel retailers will profit from the post-pandemic wardrobe revamp.

On Wednesday, the stock reached an all-time intraday low of $8.75 and closed down 6% at $10.34.

Despite the company's dismal forecast for its fiscal third quarter and reduced full-year outlook, Elizabeth Spaulding, CEO of Stitch Fix, attempted to reassure analysts during a conference call that the company's long-term strategy remains intact.

Stitch Fix has been facing challenges in onboarding new customers in the past three months, according to Spaulding. Additionally, the company's recent launch of Freestyle, a direct-buy option, has not met the anticipated conversion rate.

Spaulding acknowledged on the call that we are still figuring out the best way to onboard Freestyle's first clients and that there is work to be done in improving the Freestyle experience.

Spaulding has been leading the company's new initiatives, including the Freestyle rollout, to attract new customers since taking over as CEO from Katrina Lake last August.

Spaulding and her team's execution of initiatives is being questioned by analysts.

Simeon Siegel, a BMO Capital Markets analyst, pointed out that Stitch Fix's investments in Freestyle deviate from the company's initial objective and business model of offering personalized clothing boxes on a subscription basis, which was unique and innovative when it first launched.

Freestyle's success will depend on it being a better version of how people already shop, according to Siegel. The push into Freestyle is an attempt to improve everyday retail, and its success will depend on the company's execution.

On Tuesday evening, Truist Securities downgraded Stitch Fix's stock from buy to hold. Analyst Youssef Squali stated in a note to clients that management's execution seems to be challenging. Stitch Fix now provides little visibility into how quickly the negative trends will reverse, he said. As a result, Truist reduced its price target from $40 to $12.

Telsey Advisory Group reduced its price target from $25 to $14 and downgraded its rating from outperform to market perform.

Dana Telsey, chief executive and chief research officer, stated that although we anticipated that Freestyle would increase the company's market reach and generate additional revenue, it has been challenging to implement without causing friction during the onboarding of new Fix customers.

Stitch Fix predicts revenue to be flat to slightly down year over year for its fiscal year ending July 30, assuming a flat number of active clients throughout the 12-month period. Analysts had anticipated revenue growth of 8.1% for the year, according to Refinitiv estimates.

After Wednesday's losses, Stitch Fix's market cap is approximately $1.1 billion.

—CNBC’s Michael Bloom contributed to this reporting.