Why Stitch Fix Stock Dropped 16% in August
Fashion web site Stitch Fix (NASDAQ: SFIX) lost 16% of its stock value in August, according to data provided by S&P Global Market Intelligence. There was no new specific to the company, so it seems that the decline was due more to pessimism about the company's prospects amid declining sales and management changes.
Stitch Fix markets itself as an online personal styling service, and it uses data and machine learning combined with a human personal stylist to create fashion looks for its clients. It has gone through several iterations since its inception in 2011, beginning as a pureplay "fix" experience where customers receive a monthly set of styled apparel, and moving on to nonsubscription fixes, fixes at chosen intervals, and Freestyle, where customers can choose their own pieces from a personalized selection.
It became very popular very quickly, and exploded during the pandemic. Now it's trying to grow into that scale, and it's having a difficult time. That wasn't helped by the exit of founder and CEO Katrina Lake last year.
Source Fool.com
