Stitch Fix Hires Amazon CFO

Katrina Lake is the founder and CEO of Stitch Fix. Instead of shopping, StitchFix uses algorithms and expert stylists to pick out a box of clothes for you. Then you can try them on in your home, buy the clothes you want to keep, and return the rest. Lake founded the company in 2011, when she was 28.

After the bell Monday, Stitch Fix reported fiscal Q1 earnings of $9.5 million after a break-even quarter last year. Sales jumped to $490.4 million from $445 million in the Q1 2019. FactSet analysts expect Stitch Fix to report a loss of 16 cents a share on sales of $481 million.

“This quarter we are proud to have achieved several multiyear highs, including our highest sequential client addition on record and the highest level of successful first Fixes in the past five years,” CEO Katrina Lake said in Monday’s announcement, adding that she forecasts “between 20% and 25% growth for the full year.”

Needless to say, the company bringing in Dan Jedda as its new CFO was a power move. Dan spent the last 15 years at Amazon where he served as vice president and CFO for the company’s digital video and music division.

Consumers vote with their wallets. And impressively, this number has increased for the last eight quarters in a row. It’s clear Stitch Fix clients love the service as they are willing to spend more over time.

“Dan brings extensive experience funding and scaling some of the most innovative businesses at Amazon,” Lake said in a separate announcement on the hire. “Dan will play a critical role in helping us expand our personalization platform to deliver the most relevant, resonant and delightful shopping experiences to consumers everywhere.”

Stitch Fix shares were topping $48 in after-hours trading, after closing with a 0.8% gain at $35.83, reaching levels the stock has not seen in more than two years. The online clothier’s stock has gained nearly 40% so far this year, as the S&P 500 has increased 14.5%.

This chart shows the stock performance of Stitch Fix and TJX Companies since the Stitch Fix IPO. Over the period in question the stock of Stitch Fix has outperformed the stock of TJX, with Stitch Fix returning 44.16% while TJX companies provided a return of 32.5%.

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