Stitch Fix CEO Says The Company Is Getting Better At Finding The Most Valuable Customers For Its Service
If you wear premium jeans, then Stitch Fix’s algorithm may have its eyes on you. The personal styling company uses predictive algorithms to look at a number of attributes to determine who will make a successful client. This approach proved very successful in the latest quarter, with the company beating third-quarter estimates on the top and bottom lines, sending its stock up nearly 15% Thursday. “There’s a huge number of attributes that we find correlate with Stitch Fix and being able to deploy them, not just in terms of how we’re mapping products for clients once they’re in the service, but to be able to use that in identifying good clients, is a strength that has been a newer strength for us,” CEO Katrina Lake said Thursday on CNBC. Lake said the data it collects from users is “super valuable” and helps Stitch Fix better identify clients “that we know we’re going to be able to serve best” and would be a good match for the company. The data has helped the company remain virtually unharmed by the wreck that has hit the stocks of apparel retailers recently. Read more at CNBC.
