Stitch Fix’s Post

Stitch Fix is back to tweaking its model as it scrambles to stem declines on several fronts. This time, executives said it will be overhauling its onboarding process, and changing how it assigns out its algorithm vs human stylists. All in the name of making things more personal and more exciting. Specific details on this will be coming out in coming months, they said. New CEO, new transformation plan ... #subscriptioneconomy #apparel #retail #ecommerce https://lnkd.in/eihSwf7U

Stitch Fix, the algorithm-driven, stylist-focused purveyor of subscription apparel, saw revenue drop 21%, a 13% decline in active clients and a 9% dip in revenue per client in 2023, but new CEO Matt Baer, a former Macy’s executive, sees a pivot leading to growth after a painful restructuring and consolidation. During the course of 2023, Stitch Fix said it improved its inventory position, achieved more than $150 million in annualized cost savings, generated $39 million in free cash flow and returned to adjusted EBITDA positive territory, up $17 million. https://bit.ly/45VYWDe

Low Fashion: Stitch Fix Has Lost Some of Its Glamour. Online personal stylist specialist Stitch Fix saw shares fall more than 17% earlier this week in the wake of another disappointing earnings report for the #clothing company. 

Although #StitchFix has been using algorithms and machine learning to help select and ship boxes of #clothes to customers since long before the AI hype train left the station, the company has seen its users dwindle, as #revenues shrink and the struggle for #profitability continues.  
Indeed, active clients in the most recent quarter had fallen some 33% from their 2022 peak, with just 2.8M users having bought a box (or “Fix”) from the company in the last year. While Stitch Fix, like a handful of its competitors in the #apparel space, is likely suffering from the post-pandemic shift in spending from goods to experiences, there could be even more at play behind its struggles. 

Although the company's clothing subscription service was a novel model when it first launched in 2011, it’s somewhat at odds with the new emphasis on making eco-conscious, sustainable #fashion choices that’s been supercharged by Gen Z in recent years, as many modern #shoppers look to pre-owned platforms like #Depop, #ThredUp, and #eBay to get their online fashion fixes. JSesko@meridianfinance.com 818-914-9271 #tradecreditinsurance

Can Stitch Fix’s new transformation team prove its model at last? The online clothing-box retailer may have an opportunity to undo its mistakes and take advantage of weakness at rivals, analysts say. $SFIX https://lnkd.in/ggHqrykd #tradeguard #receivableputoptions #arputs #receivableputs #tradereceivables #accountsreceivables

We tuned in so you don't have to-- insights from Stitch Fix's Q1 2024 earnings call: As an entrepreneur in the fashion rentals space, I'm always on the lookout for insights that can help shape the future of our industry. Recently, I delved into the Q1 2024 earnings call of Stitch Fix, a prominent player in the fashion and styling domain, and I'm excited to share some key takeaways with you. Stitch Fix's CEO, Matt Baer, highlighted the company's focus on sustainable profitable growth and the power of personalized styling. It's fascinating to note that they've increased their private brands from one-third to nearly 50% of total sales, emphasizing the positive impact on client outcomes and profitability. Additionally, their advancements in generative AI initiatives have led to improved keep rates and informed client experiences, showcasing the potential of technology in shaping personalized styling services. At Hangurs, we're committed to staying at the forefront of fashion industry happenings and leveraging such insights to evolve our services. Understanding the significance of personalized styling and the impact of private brands on client satisfaction and business growth is crucial for us. It's insights like these that drive our commitment to providing a more innovative, personalized, and convenient way for our clients to experience fashion. Stitch Fix reported Q1 revenue at the high end of their guidance, showcasing resilience and outpacing their adjusted EBITDA expectations. Despite a 4% decrease in net active clients, the company saw a 6% year-over-year decline in revenue per active client. Furthermore, their focus on near-term profitability and cash flow neutrality is a strategy worth noting. The company's successful cost controls led to $8.6 million in adjusted EBITDA, exceeding the high end of their guidance range, and they ended the quarter with over $260 million in cash, cash equivalents, and investments, with no bank debt. If you'd like to stay informed about the latest in the fashion industry and how it shapes the services we offer at Hangurs, I invite you to follow us. We're dedicated to sharing valuable insights and evolving alongside the dynamic world of fashion. #FashionIndustry #EarningsCall #HangursInsights

Many analysts have openly questioned the viability of Stitch Fix's model -- paying a styling fee for a curated box of clothes that a customer may or may not keep. Nordstrom and others abandoned the approach, which employs an evolving algorithm plus human stylists, years ago. But some analysts including those at William Blair and Liza Amlani see some hope, especially now that the online apparel retailer has elevated a "transformation team." It's been a painful couple of years for the subscription company. Now new leadership must undo the damage from the previous full-time CEO AND find something that works. #apparel #ecommerce #subscriptionbox https://lnkd.in/eNQ-NueY

We at Stitch experience a lot of brand messaging whether it's for prospective clients, benchmarking or general curiosity, we're always looking for ways to improve and optimize messaging. One recent analysis I did was for a fashion retailer. Here's some metrics: 🥜 Personal Open Rate: 4% 💲 Personal Conversion Rate: 0% 💸 No Purchases to Date 📱 4 SMS to Date A few recommendations: 🔀 Try some other channels. Email might not be best for me. 🕰 Sending window was from 8am ET - 8pm ET. Try other time periods (ie. early morning, late evening). Customers may engage in different windows outside the regularly scheduled campaigns. 🌇 Establish a sunset policy...while your contactable list may shrink, you'll produce better KPIs in your Open Rate, CTR and conversion rate. #StitchAndBraze #AntiAgency #martech

Stitch Fix is looking to transform. Laying off 20% of its workforce including all full-time stylists, closing distribution centers and it's UK operation. They have also hired Tony Bacos from Amazon Fashion as their Chief Product and Technology Officer. ➡ My question - will they be able to actually transform to turn a profit while avoid a boring product mix? What Stitch Fix does have is an abundance of customer data, clearly telling the retailer/tech company what customers want and what they don't want. Using this data alongside a stylist was always their advantage but without human stylists, they may as well just be another Amazon. “If they’re looking to build out more relevant product mixes across their private label program, it would make sense to bring in a chief merchandising officer that would have not only insight into merchandising strategies and how to build out a product mix, but how to use that technology in the insights, and close the feedback loop,” Amlani said. “To actually sort product that people want, that they know they’re looking for because they have a ton of data.” Read more of my thoughts in the latest Retail Dive article by Daphne Howland. ���� https://lnkd.in/eiuR9Pp6 #retail #retailnews #stitchfix #amazon #shopping #merchandising #apparel #ecommerce #TRE

Investment Review day 42 of 50: StitchFix $SFIX (sold) StitchFix is an online personal styling service. It uses recommendation algorithms and data science to deliver 'fixes' to customers - boxes of personalised clothing items based on size, budget and style. I liked the idea of having a virtual personal shopper, a convenience factor that would seem to appeal to a wide demographic of users. I bought stock in 2018, and was excited when they launched in the UK in 2019 and looked forward to becoming a customer as well as a shareholder. Unfortunately, the shopping experience didn't live up to the promise, and the claims of data science expertise could not be seen in either the recommendation algorithm or the way customer services was run. I posted some constructive feedback, closed my account, and sold my stock. It's incredibly powerful to be a customer of the companies you invest in, there's no better way to understand a business than to buy its products or services. And if you can't become a customer yourself, perhaps a friend or family member can, and can provide unbiased feedback. -- I'm putting my holdings under the microscope. Over the next 50 days I'll break down my whole investment portfolio. Wins, losses, and the 'why' behind it all. And on day 50 I'm going to share my full portfolio so you can see how my strategies played out in the real world over the last twenty years and what we can all learn together. Follow along for the journey! #StockAnalysis #50daychallenge

It’s SO hard to shop these days. There aren’t any good stores around and who has the time? And how about the “petite” people like me?! Where the heck can we find clothes?? Enter Stitch Fix. You fill out a survey on your style. They send you new clothes once a month. 👚 👠 Is it perfect? No. Do I love some of the selections? Absolutely. Oh, it doesn't fit? They include a prepaid bag to send it back. AMAZING. It’s like receiving a Christmas present once a month. 🎅🏽❤️ Automate your shopping. You get a new item to add to your wardrobe monthly! #automate #leadership #savetime