Headlines

Stitch Fix IPO Raises $120M

Stylist subscription box sees lower-than-expected interest

Published

7 years ago

November 20, 2017

kmpeyton

Personal shopping subscription service Stitch Fix (San Francisco) saw underwhelming performance in its initial public offering Thursday. The company priced 8 million shares at $15 each, below its initial range of 10 million shares at $18 and $20, according to CNBC.

The subscription retailer’s shaky performance lately has negatively impacted interest from investors, as its rate of one-time purchases have been too high, raising concerns of its scalability.

The poor performance of other recently made-public e-commerce brands, including Blue Apron and Snap, have also given investors skepticism in the subscription model, due to their high marketing and customer acquisition costs.

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