Stitch Fix Shares Slump as CEO Steps Down

Stitch Fix (NASDAQ: SFIX) dropped a bombshell on Tuesday, announcing after the market close that founder and CEO Katrina Lake is stepping down. Lake will transition to the role of executive chairman of the board, effective Aug. 1, and President Elizabeth Spaulding will become CEO. Stitch Fix stock slumped nearly 6% in after-hours trading on the news.  

The company tried to minimize the impact of the move, saying, "Lake will remain closely connected to the company," with emphasis on Stitch Fix's social impact efforts, focusing on the "intersection between sustainability and technology in apparel retail." Lake will continue to spearhead the brand and merchandising partnerships that drive the company's advertising.

Image source: Getty Images.

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Source Fool.com