Stitch Fix Must Avoid the Pitfalls That Sank Trunk Club
Three years ago, apparel-focused subscription box service Stitch Fix (NASDAQ: SFIX) and Trunk Club looked like peas in a pod. Both were posting triple-digit growth -- and both were on the verge of turning profitable.
In this episode of Industry Focus: Consumer Goods, the team explores the parallels between Stitch Fix and Trunk Club. In 2014, Nordstrom (NYSE: JWN) acquired Trunk Club for about $350 million, but the department store eventually found that Trunk Club's profit potential was much lower than it had initially hoped, and two years later, wrote down the value of the investment by more than half. Will Stitch Fix encounter similar problems?
A full transcript follows the video.
Source: Fool.com