Stitch Fix

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Stitch Fix, Inc.
Public
Traded asNASDAQSFIX (Class A)
Russell 2000 Index component
IndustryRetail
FoundedFebruary 2011; 8 years ago (2011-02)
FoundersErin Morrison Flynn
Katrina Lake
Headquarters,
Key people
Katrina Lake, CEO
ServicesStyling
OwnersKatrina Lake (16.6%)[1]
Websitestitchfix.com

Stitch Fix is an online personal styling service in the United States. Founded in 2011, Stitch Fix went public in 2017. Immediately after the initial public offering, Stitch Fix was valued at $1.6 billion.[2] As of February 2018, the company was valued at $2 billion.[3]

History[edit]

Stitch Fix delivery box

Stitch Fix was founded in 2011 by former J.Crew buyer Erin Morrison Flynn and Katrina Lake.[4][5][6] The business was originally called Rack Habit, and was initially run out of Lake's apartment in Cambridge, Massachusetts.[7] [8] The company began by catering only to women, but it has subsequently expanded to men's clothing, plus sizes, maternity wear, and kids.[7]

Stitch Fix started to be profitable in 2014. In July 2016, the company ended its fiscal year with recorded sales of $730 million, and in May 2017, the company had raised $42 million from outside investors.[7] As of May 2018, they had 5,800 employees including 3,000 stylists and 75 data scientists. [8]

In November 2017, the company went public on NASDAQ. It was the first female led company to launch an IPO in over a year.[9]

In October 2018, several class action lawsuits were brought against Stitch Fix alleging that the company violated federal securities laws by making misleading statements about its growth prospects.[10]

Service[edit]

Stitch Fix is a personal styling service that sends individually picked clothing and accessories items for a one-time styling fee. Customers fill out a survey online about their style preferences. A stylist at the company picks five items to send to the customer. Stylists pick items based on a customer's survey answers and any access the customer gives them to their social media outlets such as Pinterest. The customer schedules a date to receive their items, which is referred to as a "Fix". Once the shipment is received, the customer has three days to choose to keep the items or return some or all of them. If the customer keeps at least one item, the initial styling fee is credited towards the cost of the item. In addition to the styling fee being credited, if the customer decides to keep all five items, the customer receives 25% off the total cost of the items. Customers choose the shipping frequency, such as every two weeks, once a month, or every two months. The company also supports integration with Pinterest boards, allowing customers to add photos of fashion looks that they like. These boards may be viewed by a Stitch Fix stylist.[11][12][13]

The company uses data science and has combined personal stylists and machine learning (AI) for personalized recommendation. [14][15][16]

Media[edit]

In 2019, Stitch Fix was featured on Wired magazine reporting astrophysicists leaving academia for Silicon Valley,[17] where Eric Colson, Stitch Fix's chief algorithms officer emeritus, describing the background of the data science team in Stitch Fix, said, "Astrophysics is our number one domain. Most folks have a PhD in a quantitative field, but if we did a histogram, I think astrophysics is number one. They teach math really well - a lot of physicists are better mathematicians than mathematicians. They also teach coding well. They're better computer scientists than most computer scientists". The same article reported that "the Stitch Fix team uses something called eigenvector decomposition, a concept from quantum mechanics, to tease apart the overlapping “notes” in an individual’s style.".

See also[edit]

References[edit]

  1. ^ Hirsch, Lauren Thomas, Lauren (17 November 2017). "Stitch Fix shares retreat after IPO pop, close at $15.15".
  2. ^ Hirsch, Lauren Thomas, Lauren (2017-11-17). "Stitch Fix shares retreat after IPO pop, close at $15.15". CNBC. Retrieved 2018-02-13.
  3. ^ "Stock-research Ratings: Stitch Fix, Inc. (SFIX), Fair Isaac Corporation (FICO) – Analyst Journal". www.thewellesleysnews.com. Retrieved 2018-02-13.
  4. ^ Griswold, Alison (April 7, 2014). "Are You There, Margaret? It's Me, Ali". Slate.
  5. ^ Hull, Dana (March 14, 2014). "Q&A: Stitch Fix founder Katrina Lake, on melding fashion and technology". San Jose Mercury.
  6. ^ Sanders, Lorraine (July 11, 2014). "A new shopping 'fix' - themed packages of products". San Francisco Chronicle.
  7. ^ a b c Merced, Michael J. De La; Benner, Katie (2017-05-10). "As Department Stores Close, Stitch Fix Expands Online". The New York Times. ISSN 0362-4331. Retrieved 2017-05-10.
  8. ^ a b "Why Stitch Fix and Its CEO Stand Out in Silicon Valley". Time. Retrieved 2018-06-17.
  9. ^ "Stitch Fix Goes Public Marketing The First Tech IPO Led By a Woman This Year". Washington Post. November 17, 2017.
  10. ^ "Stitch Fix hit with flurry of lawsuits over growth claims". Retail Dive. Retrieved 2018-10-19.
  11. ^ Peterson, Hayley (March 12, 2015). "This hot fashion startup eliminates the hardest part of shopping". Business Insider.
  12. ^ "FAQ". Stitch Fix.
  13. ^ Ciambriello, Roo (August 1, 2014). "Why Did These $68 Shorts From Stitch Fix Show Up With a $24.97 Price Tag From Nordstrom Rack?". Adweek.
  14. ^ "Stitch Fix Uses Machine Learning to Augment the Human Touch".
  15. ^ "By Humanizing Brands With AI, Common Marketing Issues Will Cease".
  16. ^ "Stitch Fix: The Amazing Use Case Of Using Artificial Intelligence In Fashion Retail".
  17. ^ "The Style-Quantifying Astrophysicists of Silicon Valley".

External links[edit]