Thursday’s Headlines: Big Changes For Stitch Fix
Here were the biggest movers in the MyWallSt shortlist yesterday:
Moving Up ⬆️
Booking Holdings (BKNG) +2.1%
Nordstrom (JWN) +2.0%
Tripadvisor (TRIP) +1.6%
Moving Down ⬇️
Coupa Software (COUP) -5.9%
Square (SQ) -5.4%
Stitch Fix (SFIX) -5.3%
Zillow (Z) -5.3%
Shopify (SHOP) -5.0%
1. Shares in Stitch Fix (SFIX) fell 5% on Wednesday following the shock resignation of CEO and founder Katrina Lake. The online styling service will appoint current president, Elizabeth Spaulding, as chief executive on August 1, at which point Lake will step back into a board role. Spaulding will be taking over a company with over 4 million clients and 8,000 employees following a rough, pandemic-hit year for the business that has seen its share price experience severe volatility. “Apparel retail is undergoing a reinvention, and Stitch Fix is exceedingly well-positioned to lead through it,” Lake said in a company email. “This moment of transformation in our business and our industry makes it the right time to think about the next generation of leadership at our company.” Read the official press release here.
2. There will be no “luck of the Irish” for Facebook (FB) after the Emerald Isles’ Data Protection Commission (DPC) launched an inquiry into the company yesterday. The investigation comes as a result of the social media site’s massive data breach reported earlier this month, where more than half a billion users’ data was made public. The DPC said that having considered information provided by Facebook, which has its European HQ in Ireland, it believes that provisions of the EU’s General Data Protection Regulation’s (GDPR) and/or the Data Protection Act 2018 “may have been, and/or are being, infringed in relation to Facebook Users’ personal data.” This latest query marks the latest in a long line of EU regulatory investigations into Facebook. Read the full report here.
3. The only thing more disturbing than Facebook’s data breach is that professional marketers were actually paid to name Spotify’s (SPOT) first hardware foray — the ‘Car Thing’. Car Thing is a Spotify controller that can be mounted in your car and features a four-inch touchscreen, a dial for menu navigation, and most importantly, four microphones, which can be used to issue voice commands. While this appears to simply be a function reminiscent of mounting your smartphone into your car, it’s actually so much less than that, as its sole function is to play Spotify. It’s unclear yet how much this cost or what sales revenue is expected to be. Check it out for yourself on the official Spotify website here.