Why you might want in on the Stitch Fix IPO

Stitch Fix IPO

Calling all fashionistas, stylists, dapper gentleman and IPO-fiends: Stitch Fix IPO is coming this week! With a few disappointing tech IPOs this year such as Snapchat and Blue Apron, many companies are holding off on going public.  Stitch Fix thinks otherwise and unlike many of their counterparts, their IPO is shaping up to be a successful one. In preparation, let’s cover exactly what Stitch Fix is.

What is Stitch Fix?

Stitch Fix gives their customers personal styling services through a simple, algorithm-based online platform. Customers enter their clothing size, budget, and style preferences and are sent five carefully-curated pieces to try. Keep what you love and return the rest at no charge.

It is targeted to busy Millennial men and women who don’t have the time or the stylish eye to find the right pieces for their closet. Unless you are a Kardashian or another celeb, personal styling services are unaffordable. Stitch Fix saw this problem and built a successful and scalable revenue model on top of it.

Stitch Fix IPO

Why has it been so successful?

Their business model is simple. Fill out the preferences and you are matched with a stylist and charged a $20 styling fee. With an average cost of $55 per item, no wonder Stitch Fix is doing so well. It is affordable and solves a huge pain for its customers: confidently picking out fashionable pieces. Stitch Fix also didn’t scale too quickly or stockpile too much inventory (see: Gilt Group) and this detail has capitulated them into unicorn territory.  

Unlike many startups who sacrifice profitability for growth, Stitch Fix grew their business contrary to that model. In the last 8 quarters, six in a row had positive net income and they reported just under $1 billion dollars in revenue this year. To put that in perspective, Tesla isn’t even profitable yet. This is wildly impressive for a company who only raised a little over 40 million dollars. 

As for their stock, Stitch Fix is pricing 10 million shares at $18 to $20 each. This is a stock that could be in very high demand.

STITCH FIX IPO

How To Get A Piece Of The Stitch Fix IPO- For FREE

If you’re reading this and thinking, ‘I wish I could grab a piece of this IPO’, you can! If you aren’t a Stockpile customer yet, join our waitlist HERE. Once the IPO is live, we’ll send you a claim code good for $5 of Stitch Fix stock.  That’s right, you’ll own a piece of Stitch Fix for free!

You could finally turn your shopping addiction into a healthy investment.

Disclaimer

This material has been distributed for informational and educational purposes only, represents an assessment of the market environment as of the date of publication, is subject to change without notice, and is not intended as investment, legal, accounting, or tax advice or opinion. Stockpile assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. The strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell. There is no guarantee that any strategies discussed will be effective. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services, and should seek advice from an independent advisor before acting on any information presented. An IPO at $18-$20 doesn’t mean that is what the Stockpile investor will receive if and when placing an order for stock.

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