The Stitch Fix IPO is a go—here’s how much money it makes
Stitch Fix, the subscription clothing startup that launched in 2011, filed for an initial public offering today. As MarketWatch reports, the company’s SEC filing reveals that it was targeting for $100 million in proceeds (though this might change in future filings) and its financial disclosures reveal a company that has very strong revenues.
In 2014, it brought in $73.2 million, and by the 2017 fiscal year, it had hit $977.1 million. Stitch Fix was profitable in 2015 and 2016, but went back to a loss of roughly $600,000 this year.
As Bloomberg’s Shira Ovide points out on Twitter, one of the most impressive things about Stitch Fix is that while it is bringing in close to $1 billion in revenue, it has only raised a total of $42.5 million in its entire history. That’s much more sustainable growth than many high-growth fashion startups like Bonobos, which raised more than $127 million in funding, but ended up selling itself to Walmart.
Ovide also mentions that Stitch Fix is trying to pitch itself first as a technology company, and second as a fashion brand. She counted that the word “data science” appears 64 times in its IPO.
“Data science” appears 64 times in the Stitch Fix IPO. This is the “We want a tech company valuation, not an e-commerce valuation” pitch.
— Shira Ovide (@ShiraOvide) October 19, 2017
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