Stitch Fix files for IPO
Apparel subscription service Stitch Fix is ready to go public.
The company filed for an initial public offering on Thursday. Stitch Fix, which had 2 million active members as of July 27, according to its S-1 filing, reported revenue of nearly $1 billion for 2017.
Stitch Fix launched in 2011. Since then, it has raised $42.5 million in venture capital from firms like Benchmark, Structure Capital, and Baseline Ventures. The company is seeking $100 million from its IPO, according to Business Insider.
Stitch Fix continues to attract shoppers based on the element of personalization. Customers fill out an online profile that illustrates their personal style, from fashion categories to cost thresholds. The company uses a custom-built, Web-based styling application that provides recommendations across its broad selection of merchandise. Stitch Fix stylists then apply their judgment to select what they believe to be the best items.
Boxes are filled with personalized items to try on, along with a prepaid return label. The styling fee per box is $20, but the fee goes toward anything the customer purchases in the box, according to Business Insider.
By relying on stylists’ input, the company is able to add “a personal touch,” offer styling advice and context to each item selected. It also helps Stitch Fix develop long-term relationships with clients, the filing reported.
“We strongly believe that most existing retail constructs are insufficient and out of date,” Katrina Lake, founder and CEO of Stitch Fix, said in the filing.
“We also believe our model of personalization, getting to know every client, each product, and generating relevant and actionable recommendations, to be superior and enduring, especially for the many people who hate to shop,” she added. “I believe we are the best in the world at personalizing in apparel at scale, but I also know that we are just at the beginning of how powerful personalization can be.”
The company filed for an initial public offering on Thursday. Stitch Fix, which had 2 million active members as of July 27, according to its S-1 filing, reported revenue of nearly $1 billion for 2017.
Stitch Fix launched in 2011. Since then, it has raised $42.5 million in venture capital from firms like Benchmark, Structure Capital, and Baseline Ventures. The company is seeking $100 million from its IPO, according to Business Insider.
Stitch Fix continues to attract shoppers based on the element of personalization. Customers fill out an online profile that illustrates their personal style, from fashion categories to cost thresholds. The company uses a custom-built, Web-based styling application that provides recommendations across its broad selection of merchandise. Stitch Fix stylists then apply their judgment to select what they believe to be the best items.
Boxes are filled with personalized items to try on, along with a prepaid return label. The styling fee per box is $20, but the fee goes toward anything the customer purchases in the box, according to Business Insider.
By relying on stylists’ input, the company is able to add “a personal touch,” offer styling advice and context to each item selected. It also helps Stitch Fix develop long-term relationships with clients, the filing reported.
“We strongly believe that most existing retail constructs are insufficient and out of date,” Katrina Lake, founder and CEO of Stitch Fix, said in the filing.
“We also believe our model of personalization, getting to know every client, each product, and generating relevant and actionable recommendations, to be superior and enduring, especially for the many people who hate to shop,” she added. “I believe we are the best in the world at personalizing in apparel at scale, but I also know that we are just at the beginning of how powerful personalization can be.”