NEW YORK, Dec. 20, 2022 /PRNewswire/ -- Moore Kuehn, PLLC, a securities and shareholder law firm located on Wall Street, is investigating potential claims against:
- Stitch Fix, Inc. ("Stitch Fix" or the "Company") (NASDAQ:SFIX)
** Only contact if shares purchased before December 8, 2020
Moore Kuehn is investigating whether Stitch Fix made misleading statements to investors concerning the synergy between the Fix and Freestyle programs, and repeatedly denied claims that the Freestyle program could cannibalize the Company's legacy Fix business.
On December 7, 2021, 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. Stitch Fix further admitted that the Company saw some "short term cannibalization" from new customers who chose to use the new direct-buy Freestyle option rather than the traditional Fix option. In addition, Stitch Fix announced a loss for its first quarter of 2021 and cut its full-year revenue projections. As a result of these disclosures, the price of Stitch Fix stock declined by $5.97 per share, or 24%, from $24.97 per share to $19.00 per share.
However, Stitch Fix continued to assure investors that this was a short-term problem, claiming that the Company had "been testing client onboarding flows" and that "we see significant new client potential ahead as Freestyle enables us to access a greater share of shopping occasions."
Then, on March 8, 2022, Stitch Fix offered a weak outlook for its third quarter of 2022 and cut its revenue guidance for the full year. In addition, Stitch Fix announced a self-inflicted friction between the Freestyle program and the Fix program. Specifically, Stitch Fix explained that when customers visited stitchfix.com-the primary landing page for customers interested in the Fix-the Company directed them to the Freestyle experience first, and "therefore, in leading clients to the Freestyle experience first, [it] inadvertently created friction" for potential customers interesting in ordering Fix.
On this news, the Company's stock price fell over 6%, to close at $10.34 on March 9, 2022.
If you still own Stitch Fix or SFIX, please contact Fletcher Moore, Esq. by email at fmoore@moorekuehn.com or telephone at (212) 709-8245.
Attorney advertising. Prior results do not guarantee similar outcomes.
Moore Kuehn, PLLC
Fletcher Moore, Esq.
30 Wall Street, 8th Floor
New York, New York 10005
fmoore@moorekuehn.com
(212) 709-8245
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