What does Katrina Lake's resignation mean for Stitch Fix investors?

After more than a decade at the helm, Stitch Fix CEO Katrina Lake is stepping down, but what does this mean for investors?
April 15, 2021
Unlock Free Stock Insights + 50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

It's the end of an era as Stitch Fix (NASDAQ: SFIX) founder and CEO Katrina Lake announced yesterday that she would be stepping down effective August 1 later this year.

But with the online styling service appointing current president, Elizabeth Spaulding, as chief executive, and Lake staying on the board, what does this mean for investors?



Don't panic!

Stitch Fix has come a long way since its market debut in 2017. It boasts about 4 million clients and roughly 8,000 employees, while its stock price has risen to $47 from its IPO price of $16.90, giving it a valuation of roughly $5 billion. 

COVID-19 has caused problems though. Shipping delays and a 7% reduction in consumer spending last year have hurt the business and caused layoffs. . Surely Lake's retirement during this tough time is bad for business? 

Not necessarily!

Investors are jumpy folk, and CEO turnover can spook them easily. But the best companies have succession plans, which is what appears to be happening here. Lake is stepping down voluntarily and has appointed a worthy successor in Spaulding. 

It is a fitting time for the change anyway as, in Lake's own words:

"Apparel retail is undergoing a reinvention, and Stitch Fix is exceedingly well-positioned to lead through it. 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."

The leader a business starts with isn't necessarily the leader it needs to see it reach the next step. To reach the next level of its growth, perhaps Spaulding is required, not Lake.

If you invested in Stitch Fix because of Katrina Lake, then rest assured she knows what she's doing in her succession. If you want to learn more about Lake's impact, read our short blog post here.

A MyWallSt subscription gives you access to over 100 market-beating stock picks and the research to back them up. Our analyst team post daily insights, subscriber-only podcasts and the headlines that move the market. Get your free access now!  

MyWallSt operates a full disclosure policy. MyWallSt staff currently holds long positions in companies mentioned above. Read our full disclosure policy here. 


Unlock Free Stock Insights +50% Off Discount Code!
Join thousands of savvy investors and get:
  • Weekly Stock Picks: Handpicked from 60,000 global options.
  • Ten Must-Have Stocks: Essential picks to hold until 2034.
  • Exclusive Stock Library: In-depth analysis of 60 top stocks.
  • Proven Success: 10-year track record of outperforming the market.
Sign up to our mailing list now and enjoy a 50% discount on premium services!
By submitting your email address, you consent to us keeping you informed about updates to our website and about other products and services that we think might interest you. You can unsubscribe at any time. Please read our Privacy Policy and Terms of Use.

The Home of Successful Investing.

© 2024 MyWallSt Ltd. All rights reserved.

Services

Content

Social

Company

Support

Resources

This website is operated by MyWallSt Ltd (“MyWallSt”). MyWallSt is a publisher and a technology platform, not a registered broker-dealer or registered investment adviser, and does not provide investment advice. All information provided by MyWallSt Limited is of a general nature for information and education purposes, and you should not construe any such information as investment advice. MyWallSt Limited does not take your specific needs, investment objectives or financial situation into consideration, and any investments mentioned may not be suitable for you. You should always carry out your own independent verification of facts and data before making any investment decisions, as we cannot guarantee the accuracy or completeness of any information we publish and any opinions that we publish may be wrong and may change at any time without notice. If you are unsure of any investment decision you should seek a professional financial advisor. MyWallSt Limited is not a registered investment adviser and we do not provide regulated investment advice or recommendations. MyWallSt Limited is not regulated by the Central Bank of Ireland. MyWallSt Limited may provide hyperlinks to web sites operated by third parties. Your use of third party web sites and content, including without limitation, your use of any information, data, advertising, products, or other materials on or available through such web sites, is at your own risk and is subject to the third parties' terms of use.