{{Short description|Online personal styling service (company)}} {{Infobox company | name = Stitch Fix, Inc. | logo = Stitch Fix logo 2026.png | type = Public | traded_as = {{ubl|{{NASDAQ|SFIX}} (Class A)|Russell 2000 component}} | industry = Retail | foundation = {{Start date and age|2011|2}}, in Cambridge, Massachusetts, U.S. | founders = {{ubl|Katrina Lake|Erin Morrison Flynn}} | key_people = {{ubl| | Katrina Lake (chairperson) | Matt Baer (CEO) }} | location = One Montgomery Tower, San Francisco, California | location_country = U.S. | services = Styling, clothing, footwear, accessories | owners = Katrina Lake (16.6%)<ref>{{cite web|url=https://www.cnbc.com/2017/11/17/stitch-fix-ipo-opening-trade.html|title=Stitch Fix shares retreat after IPO pop, close at $15.15|first1=Lauren |last1=Thomas |author2=Lauren Hirsch |publisher=CNBC|date=17 November 2017}}</ref> | homepage = {{URL|https://stitchfix.com/}} | revenue = {{decrease}} {{US$|1.27 billion|link=yes}} (2025) | operating_income = {{increasenegative}} −{{US$|38.9}} (2025) | net_income = {{increasenegative}} −{{US$|28.8 million}} (2025) | assets = {{decrease}} {{US$|481 million}} (2025) | equity = {{increase}} {{US$|203 million}} (2025) | num_employees = 4,165 (2025) | footnotes = Financials {{as of|2025|09|24|lc=y|df=US}}.<ref name=finance>{{cite web |url=https://www.sec.gov/Archives/edgar/data/1576942/000162828025042782/sfix-20250802.htm |title=Stitch Fix, Inc. FY 2025 Annual Report (Form 10-K) |publisher=U.S. Securities and Exchange Commission |date=18 September 2025}}</ref> }}
'''Stitch Fix, Inc.''' is an online personal styling service in the United States. The company combines human stylists with AI tools and data science to recommend clothing items and accessories based on fit, budget and style preferences. The company was founded in 2011 and had an initial public offering in 2017 with a valuation of $1.6 billion.<ref>{{Cite web |url=https://www.forbes.com/sites/laurengensler/2017/11/17/stitch-fix-ipo-first-day-of-trading/ |title=Stitch Fix Shares Pop In IPO, With Retailer Raising $120 Million |last=Debter |first=Lauren |website=Forbes |language=en |access-date=2020-04-23}}</ref> For fiscal year 2025, Stitch Fix reported net revenue of $1.27 billion.<ref>{{Cite web |date=September 24, 2025 |title=Stitch Fix Announces Fourth Quarter and Full Fiscal Year 2025 Financial Results |url=https://finance.yahoo.com/news/stitch-fix-announces-fourth-quarter-200500226.html |access-date=May 21, 2026}}</ref> As of November 2025, it had approximately 2.31 million active clients and employed about 4,165 people worldwide.<ref name=":2" /> It is headquartered in San Francisco, California.<ref>{{Cite web |url=https://investors.stitchfix.com/static-files/5beae71b-88d6-466b-a01d-7eb46c06a372 |title=Stitch Fix FORM 10-K |website=Stitch Fix |language=en |access-date=2024-02-06}}</ref>
==History==
=== Founding and growth: 2011-2019 === thumb|right|Stitch Fix delivery box Stitch Fix was founded in 2011 by Katrina Lake and former J.Crew buyer Erin Morrison Flynn.<ref>{{cite news|last=Griswold|first=Alison|title=Are You There, Margaret? It's Me, Ali.|url=http://www.slate.com/articles/business/crosspollination/2014/04/stitch_fix_personal_shopping_for_people_who_hate_to_shop.html|newspaper=Slate|date=April 7, 2014}}</ref><ref>{{cite news|last=Hull|first=Dana|title=Q&A: Stitch Fix founder Katrina Lake, on melding fashion and technology|url=http://www.mercurynews.com/business/ci_25344221/q-stitch-fix-founder-katrina-lake-melding-fashion|newspaper=San Jose Mercury|date=March 14, 2014}}</ref><ref>{{cite news|last=Sanders|first=Lorraine|title=A new shopping 'fix' - themed packages of products.|url=http://www.sfgate.com/style/stylebytes/article/A-new-shopping-fix-themed-packages-of-products-3337242.php|newspaper=San Francisco Chronicle|date=July 11, 2014}}</ref> The business was originally called Rack Habit, and was initially run out of Lake's apartment in Cambridge, Massachusetts.<ref name=":0">{{Cite news|url=https://www.nytimes.com/2017/05/10/business/dealbook/as-department-stores-close-stitch-fix-expands-online.html|title=As Department Stores Close, Stitch Fix Expands Online|last1=de la Merced|first1=Michael J.|date=2017-05-10|work=The New York Times|access-date=2017-05-10|last2=Benner|first2=Katie|issn=0362-4331}}</ref><ref name="auto">{{Cite magazine|url=https://time.com/5264160/stitch-fix-has-one-of-silicon-valleys-few-female-ceos/|title=Why Stitch Fix and Its CEO Stand Out in Silicon Valley|magazine=Time|language=en|access-date=2018-06-17}}</ref> The company began by catering only to women, but it has subsequently expanded to men's clothing, plus sizes, maternity wear, and kids.<ref name=":0" />
In 2014, Stitch Fix started to be profitable. 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.<ref name=":0" />
In November 2017, the company went public on Nasdaq. It was the first female-led company to launch an IPO in over a year.<ref>{{cite news|newspaper=Washington Post|date=November 17, 2017|title=Stitch Fix Goes Public Marketing The First Tech IPO Led By a Woman This Year|url=https://www.washingtonpost.com/news/business/wp/2017/11/17/stitchfix-goes-public-marking-the-first-tech-ipo-led-by-a-woman-this-year/}}</ref>
In October 2018, several class action lawsuits were brought against Stitch Fix alleging that the company had violated federal securities laws by making misleading statements about its growth prospects.<ref>{{Cite news|url=https://www.retaildive.com/news/stitch-fix-hit-with-flurry-of-lawsuits-over-growth-claims/539657/|title=Stitch Fix hit with flurry of lawsuits over growth claims|work=Retail Dive|access-date=2018-10-19|language=en-US}}</ref>
=== Leadership changes and restructuring: 2020-2023 === On June 2, 2020, the company announced layoffs for 1,400 employees, which was 18% of its total workforce, all of whom were remote workers in California. The affected employees were given the option of remaining with the company if they relocated.<ref>{{cite web|last1=Canales|first1=Katie|title=Online clothing retailer Stitch Fix is laying off 1,400 California employees and instead hiring in lower-cost cities like Austin and Minneapolis|url=https://www.businessinsider.com/online-personal-styling-company-stitch-fix-is-laying-off-1400-2020-6|access-date=3 June 2020|website=businessinsider.com}}</ref> The online retailer also announced it would hire roughly 2,000 stylists in cities that have a lower cost of living than those in California, such as Austin, Cleveland, Dallas, Minneapolis, and Pittsburgh.<ref>{{cite web |last1=Kolodny |first1=Lora |title=Stitch Fix is laying off 1,400 employees in California, and plans to hire in lower-cost U.S. cities |url=https://www.cnbc.com/2020/06/01/stitch-fix-is-laying-off-1400-in-california-18percent-of-workforce.html |website=cnbc.com |access-date=2020-06-03 |date=2020-06-01 }}</ref>
In August 2021, Elizabeth Spaulding replaced founder Katrina Lake as CEO.<ref>{{Cite web |last=Segran |first=Elizabeth |date=2021-04-23 |title=Stitch Fix sells $1.7 billion of clothes each year. Now, its visionary CEO is passing the baton |url=https://www.fastcompany.com/90628362/stitch-fix-sells-1-7-billion-of-clothes-each-year-now-its-visionary-ceo-is-passing-the-baton |access-date=2022-04-04 |website=Fast Company |language=en-US}}</ref> In January 2023, Spaulding stepped down as CEO, and Lake returned as interim CEO.<ref>{{Cite web |last=York |first=Alexandra |date=2023-01-06 |title=Stitch Fix founder Katrina Lake returns as CEO. Here are 5 others who went back to run their former companies.|url=https://www.businessinsider.com/boomerang-ceos-including-bob-iger-steve-jobs-jack-dorsey-2022-11 |access-date=2023-02-13 |website=Business Insider |language=en-US}}</ref> Former Macy's executive Matt Baer was named CEO in June 2023.<ref>{{Cite web | title=Stitch Fix announces appointment of Matt Baer as Chief Executive Officer; Founder and interim Chief Executive Officer Katrina Lake will continue on in her role as Executive Chairperson of the Board {{!}} Stitch Fix | url=https://investors.stitchfix.com/news-releases/news-release-details/stitch-fix-announces-appointment-matt-baer-chief-executive | access-date=2024-12-15 | website=investors.stitchfix.com}}</ref>
In June 2022, Stitch Fix laid off approximately 15% of its salaried staff, which equated to around 330 employees, citing slowing growth in the e-commerce retail industry as the reason for the cuts.<ref>{{Cite web |last=Thomas |first=Lauren |date=2022-06-09 |title=Stitch Fix shares sink after company announces layoffs, offers weak guidance |url=https://www.cnbc.com/2022/06/09/stitch-fix-is-laying-off-15percent-of-its-salaried-employees-internal-memo-says.html |access-date=2024-12-11 |website=CNBC |language=en}}</ref>
In January 2023, Stitch Fix announced it would reduce its salaried workforce by about 20% and CEO Elizabeth Spaulding would step down. Founder Katrina Lake returned as interim CEO. The changes were part of a broader restructuring after a time of sliding sales.<ref>{{Cite web |last=Movement |first=Q. ai-Powering a Personal Wealth |title=Layoff News: Stitch Fix To Replace CEO And Cut 20% Of Workforce |url=https://www.forbes.com/sites/qai/2023/01/13/layoff-news-stitch-fix-to-replace-ceo-and-cut-20-of-workforce/ |access-date=2024-12-11 |website=Forbes |language=en}}</ref>
In June 2023, Matt Baer was named Stitch Fix’s new CEO.<ref>{{Cite web |last=Fonrouge |first=Gabrielle |date=2025-08-11 |title=Can Stitch Fix make a comeback? Inside the company's return to growth |url=https://www.cnbc.com/2025/08/11/how-pandemic-darling-stitch-fix-returned-to-growth.html |access-date=2026-02-25 |website=CNBC |language=en}}</ref> Katrina Lake continued in her role as executive chairperson of the board.<ref>{{Cite web |date=June 14, 2023 |title=Stitch Fix names former Macy's exec Matt Baer as CEO |url=https://www.reuters.com/article/business/media-telecom/stitch-fix-names-former-macys-exec-matt-baer-as-ceo-idUSL4N3862YD/ |access-date=February 11, 2026}}</ref>
=== Recent developments: 2024-2026 === In the first quarter of fiscal year 2024, Stitch Fix ceased operations of its business in the United Kingdom.<ref name=":2">{{Cite web |title=Stitch Fix Posts Solid Fiscal Q1 Growth Despite Dip in Active Customers {{!}} SGB Media Online |url=https://sgbonline.com/stitch-fix-posts-solid-fiscal-q1-growth-despite-dip-in-active-customers/ |access-date=2026-03-04 |website=sgbonline.com}}</ref> The company said it would focus solely on its core U.S. market.<ref>{{Cite web |date=2023-06-07 |title=Stitch Fix to Explore Exiting UK Market in 2024 |url=https://www.businessoffashion.com/news/retail/stitch-fix-to-explore-exiting-uk-market-in-2024/ |access-date=2026-03-12 |website=The Business of Fashion |language=en}}</ref>
In 2024, Stitch Fix outlined a multi-year transformation strategy structured around three phases: rationalize, build, and grow. The strategy was introduced as part of the company's efforts to stabilize the business, simplify operations, and return to sustainable growth. By fiscal year 2025, the company stated that it had entered the "grow" phase of this transition.<ref>{{Cite web |last=Fonrouge |first=Gabrielle |date=2025-08-11 |title=Can Stitch Fix make a comeback? Inside the company's return to growth |url=https://www.cnbc.com/2025/08/11/how-pandemic-darling-stitch-fix-returned-to-growth.html |access-date=2026-03-12 |website=CNBC |language=en}}</ref>
In August 2024, as part of its transformation, Stitch Fix began rolling out updates to its client experience. The changes focused on creating more ways for clients to engage, adding flexibility to how they shop, making Stylists more visible, and improving the overall assortment.<ref>{{Cite web |title=At Stitch Fix, stylists move into the spotlight {{!}} Retail Dive |url=https://www.retaildive.com/news/stitch-fix-stylists-spotlight-customer-experience-branding-overhaul/725323/ |access-date=2026-03-20 |website=www.retaildive.com |language=en-US}}</ref> As part of a broader rebrand, the company introduced Retail Therapy, a brand platform built around real shopping frustrations and therapy-inspired storytelling, across social media, television, over-the-top video, and YouTube.<ref>{{Cite web |title=How Stitch Fix’s brand platform is helping drive transformation {{!}} Marketing Dive |url=https://www.marketingdive.com/news/how-stitch-fixs-brand-platform-is-helping-drive-transformation/749020/ |access-date=2026-03-25 |website=www.marketingdive.com |language=en-US}}</ref>
As part of these changes, Stitch Fix introduced an AI tool called StyleFile, a personalized resource assigned to each Stitch Fix customer based on their preferences and shopping behavior, that defines their style, resulting in multi-faceted profiles that can include styles like "edgy" or "boho".<ref>{{Cite web |last=Zwieglinska |first=Zofia |date=2024-10-04 |title=Stitch Fix introduces AI-driven customer profiles amid revenue decline |url=https://www.glossy.co/fashion/stitch-fix-introduces-ai-driven-customer-profiles-amid-revenue-decline/ |access-date=2026-03-31 |website=Glossy |language=en}}</ref> Stitch Fix also introduced Stylist Profiles, which provides a profile for each stylist that features their "unique expertise and work portfolio, as well as related interests".<ref>{{Cite web |title=At Stitch Fix, stylists move into the spotlight {{!}} Retail Dive |url=https://www.retaildive.com/news/stitch-fix-stylists-spotlight-customer-experience-branding-overhaul/725323/ |access-date=2026-03-31 |website=www.retaildive.com |language=en-US}}</ref>
In August 2025, Stitch Fix announced its latest set of changes to its client experience, including several that leverage GenAI.<ref name=":1" /><ref>{{Cite web |last=Berthiaume |first=Dan |date=October 6, 2025 |title=Stitch Fix pilots generative AI style visualization |url=https://chainstoreage.com/stitch-fix-pilots-generative-ai-style-visualization |access-date=April 7, 2026}}</ref> These included Stylist connect, a feature that allows clients to communicate with a stylist outside of their scheduled Fix, AI Style Assistant, which was designed to help clients articulate their style preferences, and the launch of Stitch Fix Vision, a generative-AI style visualization tool.<ref name=":3" /><ref>{{Cite web |last=Silberstein |first=Nicole |date=2025-08-12 |title=Stitch Fix Amps Up Personalization with New AI Features |url=https://www.retailtouchpoints.com/news/stitch-fix-amps-up-personalization-with-new-ai-features/153753/ |access-date=2026-04-23 |website=Retail TouchPoints |language=en-US}}</ref>
On October 6, 2025, Stitch Fix launched Stitch Fix Vision.<ref name=":3">{{Cite web |last=Duckett |first=Beth |date=2025-10-09 |title=Stitch Fix Vision brings new generative AI-powered try-on options |url=https://www.digitalcommerce360.com/2025/10/09/stitch-fix-vision-generative-ai-try-on/ |access-date=2026-03-25 |website=Digital Commerce 360 |language=en-US}}</ref> Clients who use Vision upload a selfie or full-length photo and receive AI-generated images of themselves wearing recommended outfits based on individual style profiles.<ref name=":1">{{Cite web |last=PYMNTS |date=2025-12-07 |title=Stitch Fix Says AI Images Support Growth as Customers Share Them |url=https://www.pymnts.com/artificial-intelligence-2/2025/stitch-fix-says-ai-images-support-growth-as-customers-share-them/ |access-date=2026-04-07 |website=PYMNTS.com |language=en-US}}</ref>
In December 2025, Stitch Fix reported net revenue of $342.1 million, a 7.3% year-over-year increase. It had around 2.31 million active clients, down 5.2% year-over-year, but net revenue per client rose 5.3% to $559.<ref name=":2" /> Gross profit was $149.3 million. In June 2025, Stitch Fix announced its return to YoY revenue growth<ref>{{Cite web |last=Douglass |first=Rachel |date=2025-06-12 |title=Stitch Fix returns to revenue growth in Q3, ‘exceeded expectations’ |url=https://fashionunited.com/news/business/stitch-fix-returns-to-revenue-growth-in-q3-exceeded-expectations/2025061266546 |access-date=2026-04-16 |website=FashionUnited |language=en}}</ref> and in December, the company began 2026 with no debt. It announced it expected to be free cash flow positive throughout 2026.<ref name=":2" />
== Service == 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.<ref>{{Cite news |title=Stitch Fix Review: What to Know Before You Buy |language=en-US |work=The New York Times |url=https://www.nytimes.com/wirecutter/reviews/stitch-fix/ |access-date=2022-05-13 |issn=0362-4331}}</ref> Stylists pick items based on a customer's survey answers and any access the customer gives them to their social media outlets. A stylist at the company then picks five items to send to the customer. 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.<ref>{{cite news|last1=Peterson|first1=Hayley|title=This hot fashion startup eliminates the hardest part of shopping|url=http://www.businessinsider.com/stitch-fix-review-2015-3|work=Business Insider|date=March 12, 2015}}</ref><ref>{{cite news|last1=Ciambriello|first1=Roo|title=Why Did These $68 Shorts From Stitch Fix Show Up With a $24.97 Price Tag From Nordstrom Rack?|url=http://www.adweek.com/adfreak/why-did-these-68-shorts-stitch-fix-show-2495-price-tag-nordstrom-rack-159245|work=Adweek|date=August 1, 2014}}</ref>
The company uses data science and has combined personal stylists and machine learning (AI) for personalized recommendation.<ref>{{cite news|title=Stitch Fix Uses Machine Learning to Augment the Human Touch|newspaper=The Wall Street Journal |date=14 January 2019 |url=https://www.wsj.com/articles/stitch-fix-uses-machine-learning-to-augment-the-human-touch-11547508890 |last1=Strong |first1=Jennifer }}</ref><ref>{{cite web|title=By Humanizing Brands With AI, Common Marketing Issues Will Cease|date=10 January 2019 |url=https://www.adweek.com/digital/by-humanizing-brands-with-ai-common-marketing-issues-will-cease/}}</ref><ref>{{cite web|title=Stitch Fix: The Amazing Use Case Of Using Artificial Intelligence In Fashion Retail|website=Forbes|url=https://www.forbes.com/sites/bernardmarr/2018/05/25/stitch-fix-the-amazing-use-case-of-using-artificial-intelligence-in-fashion-retail/}}</ref>
==Media==
Stitch Fix was referenced in a ''Wired'' article about recommendation algorithms, data science and astrophysics in Silicon Valley.<ref>{{cite magazine|title=The Style-Quantifying Astrophysicists of Silicon Valley|magazine=Wired |url=https://www.wired.com/story/the-style-maven-astrophysicists-of-silicon-valley |last1=Pardes |first1=Arielle }}</ref> ''Wired'' also highlighted a new feature known as "Shop Your Looks," which suggests items matched to those previously purchased by customers.<ref name="wiredshop">{{Cite magazine |url=https://www.wired.com/story/stitch-fix-shop-your-looks/ |title=Need Some Fashion Advice? Just Ask the Algorithm |magazine=Wired |access-date=2020-04-23 |last1=Pardes |first1=Arielle }}</ref> ''Fast Company'' profiled the company and called attention to "its data prowess across every aspect of its business to reinvent the $334 billion U.S. apparel industry." It was recognized as one of the "50 Most Innovative Companies" for 2019.<ref>{{Cite web |url=https://www.fastcompany.com/90298900/stitch-fix-most-innovative-companies-2019 |title=Stitch Fix's radical data-driven way to sell clothes–$1.2 billion last year–is reinventing retail |access-date=2020-04-23}}</ref> Stitch Fix hosted a Golden Globes-like red carpet event in the 59th Street–Columbus Circle station in New York City and had a 60-second spot before the 2019 Academy Awards.<ref>{{Cite web |url=https://www.esquire.com/style/mens-fashion/a26331120/stitch-fix-red-carpet-nyc/ |title=Stitch Fix Set Up a Red Carpet for Real Guys in NYC |date=22 February 2019 |access-date=2020-04-23}}</ref><ref>{{Cite web |url=https://adage.com/article/cmo-strategy/stitch-fix-debuts-brand-campaign-oscars-night/316729 |title=Stitch Fix debuts new brand campaign on Oscars night |date=24 February 2019 |access-date=2020-04-23}}</ref>
==References== {{reflist}}
==External links== *{{official website|https://stitchfix.com}}
Category:American companies established in 2011 Category:Retail companies established in 2011 Category:Internet properties established in 2011 Category:Non-store retailing Category:Retail companies of the United States Category:Companies based in San Francisco Category:Companies listed on the Nasdaq Category:2017 initial public offerings Category:Subscription services