ClaimsFiler, a FREE shareholder information service, reminds investors that they have until October 25, 2022 to file lead plaintiff applications in a securities class action lawsuit against Stitch Fix, Inc., if they purchased the Company’s shares between December 8, 2020, and March 8, 2022, inclusive (the “Class Period”). This action is pending in the United States District Court for the Northern District of California.
Stitch Fix investors should visit us at https://claimsfiler.com/cases/nasdaq-sfix-1/ or call toll-free (844) 367-9658. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
Stitch Fix and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
On December 7, 2021, the Company disclosed the occurrence of “short term cannibalization” from new customers who chose to use its new direct-buy Freestyle option rather than the traditional Fix option, as well as a loss for its first quarter of 2021 and a cut to its full-year revenue projections. On this news, shares of Stitch Fix declined by $5.97 per share, or 24%, from $24.97 per share to $19.00 per share.
Then, on March 8, 2022, the Company disclosed a weak outlook for the third quarter of 2022 and a cut to its revenue guidance for the full year, as well as “friction” that had occurred due to customers visiting stitchfix.com, the primary landing page for customers interested in the Fix, being redirected to the Freestyle experience first. On this news, shares of Stitch Fix declined by $0.67 per share, or 6%, from $11.01 per share to $10.34 per share.
The case is Retail Wholesale Department Store Union Local 338 Retirement Fund v. Stitch Fix, Inc., No. 22-cv-4893.
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