NEW YORK, Sept. 14, 2022 (GLOBE NEWSWIRE) — Pomerantz LLP is investigating claims on behalf of investors of Stitch Fix, Inc. (“Stitch Fix” or the “Company”) SFIX. Those investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, extension 7980.

The investigation concerns whether Stitch Fix and certain of its officers and/or directors have engaged in securities fraud or other illegal business practices.

[Click here for information about joining the class action]

On December 7, 2021, Stitch Fix admitted for the first time that the company had downplayed the extent of the transition from its subscription-based “Fix” model to its retail-based “Freestyle” model. Stitch Fix went on to admit that the company experienced some “short-term cannibalization” of new customers opting for the new Freestyle direct purchase option over the traditional Fix option. Additionally, Stitch Fix announced a loss for the first quarter of 2021 and lowered its full-year revenue guidance.

As a result of this news, Stitch Fix’s stock price fell $5.97 per share, or 24%, to close at $19.00 per share on December 8, 2021.

Then, on March 8, 2022, Stitch Fix offered a weak outlook for the third quarter of 2022 and lowered its full-year revenue guidance. Additionally, Stitch Fix announced self-inflicted friction between the Freestyle program and the Fix program. In particular, Stitch Fix explained that the company directed customers who visit stitchfix.com – the primary landing page for customers interested in Fix – to the Freestyle experience first, and “therefore by leading customers to the Freestyle experience first.” , [it] unintentionally generated friction” interesting for potential customers to order Fix.

As a result of this news, Stitch Fix’s stock price fell $0.67 per share, or 6%, to close at $10.34 per share on March 9, 2022.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris and Tel Aviv, is one of the leading…