Stitch Fix Defies Odds, Soars Over 50% Since Lackluster Debut
It’s been just ten days since Stitch Fix debuted on the stock market, and it has risen almost 54 percent since that time. It’s an astonishing feat for the fashion styling business, which got off to a rough start, but quickly turned things around as it started to gain momentum by its third day of trading and soared 24 percent today, better known as “Cyber Monday.” For those who didn’t watch this highly anticipated IPO, Stitch Fix originally priced its offering at $15, which was below its proposed price range of $18 to $20, even after reducing the size of its offering. It then closed the first day at $15.15, below the opening price of $16.90. The following day it “broke issue,” closing beneath the $15 IPO price. And all of this was well beneath the $22.61 that the company valued its buyback at last year. Last Tuesday, however, Stitch Fix changed course, and it’s been on a roll ever since. One possibility for the bullish sentiment could be that investors are predicting a big holiday quarter for e-commerce and this business in particular. Amazon shares have also gone up this week. Read more at TechCrunch.
