SHAREHOLDER WARNING: The Pomerantz Law Firm is investigating claims on behalf of

SHAREHOLDER WARNING: The Pomerantz Law Firm is investigating claims on behalf of

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NEW YORK, Oct. 06, 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 law firms in the…


Read full story here https://www.benzinga.com/pressreleases/22/10/g29177585/shareholder-alert-pomerantz-law-firm-investigates-claims-on-behalf-of-investors-of-stitch-fix-inc-

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