Plz fix
Online personal stylist Stitch Fix is cutting 20% of its workforce and parting ways with CEO Elizabeth Spaulding, after sales slowed and shares shed more than half their value last year.
Always on-trend, Stitch Fix is now following in the footsteps of giants like Disney and Starbucks by electing former CEO Katrina Lake, who founded the company, to step back up to the top job.
Lake founded Stitch Fix in 2011 while studying for an MBA. The company started with just 29 clients, most of whom were friends of the founder, with each box of clothes delivered in-person by Lake herself. That concept proved popular and the offering scaled to where it is today, where users leave their fashion fate in the hands of algorithms and stylists, receiving garments delivered to their door at frequencies they choose.
So last season
Using data to pick trends and garments propelled Stitch Fix to more than $2bn of sales in 2021, boosted by COVID which shifted many people’s shopping habits online. However, even in that record-breaking year, operating losses had already begun to mount and — after Katrina Lake stepped down as CEO in August 2021 — sales stalled, leaving the company with a $208m loss last year.
Whether Stitch Fix users have become subscription fatigued, grown wary of the ever-growing influence algorithms hold in everyday life, or simply have a stronger desire to get more agency in their clothing choices, it’s clear that algo-picked apparel is out of fashion... for now at least.
