Sign In
Step 1
Unite with Fellow Investors
Step 2
Choose the Best Attorney
Step 3
Provide Documents
Step 4
Follow Case Progress
Step 5
Get Payout
SFIX.US
id: 220
N.D. California
Court
On March 8, 2022, Stitch Fix provided a weak outlook for its Q3 2022 and cut its revenue guidance for the full year. Also, Stitch Fix announced self-inflicted friction between the Freestyle program and the Fix program.
On this news, the price of Stitch Fix stock declined by 6%.
Back on December 8, 2020, Stitch Fix launched the “Freestyle” program (a new, direct buy program where customers could choose from the outset which items to purchase) to “expand our addressable market, deepen client engagement and grow wallet share over time.” The Company repeatedly denied claims that the Freestyle program could cannibalize its legacy Fix business.
On December 7, 2021, however, Stitch Fix admitted for the first time that the Company had downplayed the magnitude of its transition from the subscription-based Fix model to the retail-based Freestyle model. But the Company continued to assure investors that this was a short-term problem.
Taking into account all the statements of the Company and the actual results, there are grounds for suspicion that there was misinformation or negligence from the Company's management, which led to significant losses for investors.
Alleged Offence
Mismanagement
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Malpractice
Negligence
Omissions
Suspected Party
Directors
Management
Security Type
Stocks
Trade Direction
Long
Shock Event Date
08 March 2022
Collecting participants…

Stitch Fix

Stitch Fix, Inc. sells a range of apparel, shoes, and accessories for men, women, and kids through its website and mobile application in the United States and the United Kingdom. It offers denim, d...

    Ticker
    SFIX.US
    ISIN
    US8608971078
    CIK
    1576942
    Sector
    Consumer Cyclical
    Industry
    Apparel Retail
    Country
    USA
    Address
    1 Montgomery Street, San Francisco, CA, United States, 94104