Stitch Fix Prices IPO Of 8 Million Shares At $15, Below Expectations
Online personal shopping company Stitch Fix priced its initial public offering (IPO) below expectations in a downsized offering on Thursday, raising $120 million. The underwhelming IPO highlights the challenges e-commerce companies face going public in the wake of poor performances from Snap and Blue Apron. It was also a disappointing debut for the newest breed of online shopping companies, which includes Warby Parker and Rent the Runway. Stitch Fix priced 8 million shares at $15, below its indicated range of $18 and $20. The company had originally planned to sell 10 million shares in the offering. The main concern for investors was its continued ability to stay profitable, according to a source familiar with the situation. That concern was exacerbated in the wake of troubles at Blue Apron and Snap. Both went public with losses on the promise of growth, only to see their stocks crater amid disappointing performance. Read more on CNBC.
