Can AI fix Stitch Fix?

The clothing subscription service posted its first quarter of sales growth in three years — now it’s doubling down on AI.

Claire Yubin Oh

8/15/25 6:49AM

Stitch Fix, the online personal styling service that sends handpicked outfits to your door, has had a rough few years.

Founded in 2011, the company’s relatively narrow appeal — to those who didn’t like clothes shopping and didn’t want to choose what they wear — widened massively during the pandemic, as shops shuttered and fashion went online. But as quickly as the hype came, it disappeared, with the SFIX’s stock dropping more than 90% between January 2021 and the summer of 2022 as customers ditched the platform for rival subscriptions, or just went back to shopping in real life again.

There are some positive signs, however, as the company posted its first top-line growth in three years, with net revenues climbing 0.7% year over year in its latest quarter. Unfortunately, its key active user figure is still dropping: falling from a pandemic-era peak of 4.3 million users, the company now counts a threadbare 2.4 million as of the end of May.

Stitch fix active user chart — Sherwood News

Now the company — which makes money by charging a $20 styling fee for all “fixes” alongside the clothes themselves — is hoping AI can help drive growth.

This week the company announced a new AI “Style Assistant” for clients, as well as new AI-powered visual tools to help you see what you might look like wearing that new scarf, sweater, or T-shirt.

Will millions of people rush out to ask an AI’s opinion of how they look in their new clothes? Considering that many already use AI as a therapist, a boyfriend/girlfriend, or a career counselor, it doesn’t feel like much of a stretch to think they’d also ask it for fashion advice.

The problem SFIX might run into is: what if ChatGPT or DeepSeek or Claude can also do this — will people open a separate AI app just for fashion? Stitch Fix’s new boss, Matt Baer, who was tasked with fixing Stitch Fix when he became CEO in June 2023, is betting the answer is yes.

Max Knoblauch9h

The Trump administration is reportedly planning a 50% made-in-America requirement for USMCA tariff relief

Qualifying for USMCA-related lower tariffs may soon require more US-made vehicle components, according to reporting by The Wall Street Journal.

The Trump administration is reportedly planning to introduce a 50% US content requirement for vehicles covered by the trade pact to receive lower tariffs. The content would be measured by cost, according to the WSJ.

There currently isn’t any US-specific requirement for those lower tariff rates, but in order to receive preferential tariffs, vehicles are must contain at least 75% regional content (components made in North America). Per Reuters reporting, the Trump admin is seeking to raise the regional requirement to 82%.

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Overall, Tesla will likely have the easiest time qualifying for any stricter requirements. The automaker’s vehicles contained the highest amount of US/Canadian content in 2025, according to American University research. Ford, GM, and Stellantis all scored lower.

Notably: the underlying government data that many domestic content measurements rely on intentionally combines US and Canadian components, so it’s difficult to know exactly how much of any given vehicle is specifically US-made.

Exclusive | Trump Administration Wants Autos Under USMCA to Be at Least 50% Made in America

These reported plans are subject to change as the US negotiates USMCA terms with Mexico over the next few months.

Tom Jones16h

The $640,000 Luce makes the average Ferrari look like a bargain

Put aside the shape; put aside the smoothing out of Ferrari’s iconic sharp edges; put aside, even, the calls from former Chairman and President Luca Cordero di Montezemolo to “take the Prancing Horse off.” On the grounds of price alone, Luce detractors might have a point.

By now, many of us will have read the criticisms of Ferrari’s first fully electric vehicle, as the Luce — which was unveiled to the world earlier this week and promptly saw the company’s shares crash out in New York and Milan — gets subtly shaded by competitors online and not-so-subtly shaded by basically everyone else.

What makes all of this worse for Ferrari is that, even by the luxury car maker’s notoriously high standards, they’ve slapped a pretty hefty price tag on the Luce, and the company’s CEO, Benedetto Vigna, has already been forced to defend the €550,000 ($640,000) price point, saying yesterday that it’s “fair to pay for innovation,” per Reuters.

While Ferrari’s cars have been getting more expensive of late, as recently as 2022, Ferrari’s average revenue per car sold was around $340,000. At nearly twice that price, this new electric model is obviously proving a little much (visually, conceptually, and financially) for many loyal and long-standing fans of the Prancing Horse to stomach.