SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims On Behalf of Investors of Stitch Fix, Inc. - SFIX
NEW YORK, Oct. 26, 2022 /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Stitch Fix, Inc. ("Stitch Fix" or the "Company") (NASDAQ: SFIX). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 7980.
The investigation concerns whether Stitch Fix and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On December 7, 2021, Stitch Fix admitted for the first time that the Company had downplayed the magnitude of the transition from its subscription-based "Fix" model to its 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.
On this news, Stitch Fix's stock price fell $5.97 per share, or 24%, to close at $19.00 per share on December 8, 2021.
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, Stitch Fix's stock price fell $0.67 per share, or 6%, to close at $10.34 per share on March 9, 2022.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
SOURCE Pomerantz LLP
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