Stitch Fix is not only the obsession of many working in the fashion industry. The startup is also a true ‘unicorn’. As in: very, very rare in how it operates. Stitch Fix has been profitable for a while now and had the discipline to not take more money from VCs.
Stitch Fix still hasn’t raised any funding since a $25 million round led by Benchmark in 2014, it turns out, but many e-commerce industry insiders couldn’t figure out how.
Here’s one answer: The company has been cash-flow positive since 2014 and profitable on a net income basis since 2015, a company exec said today.
In the last 12 months, we’ve expanded our product assortment to 450 brands, launched Stitch Fix Men, introduced Stitch Fix Plus for women’s sizes 14W-24W and 1X-3X, announced key additions to our executive leadership, expanded to more than 5,700 employees nationwide, and continued to grow our client base. We generated $730 million in revenue in our 2016 fiscal year, marking our third consecutive year of profitability.
And while Stitch Fix executives say they have no specific plans to go public, the company is well positioned to file for an initial public offering as soon as this year.
Should Stitch Fix go public, it would be the biggest retail offering since Etsy two years ago. Perhaps more important, it would be a Silicon Valley rarity: a profitable company that did not raise money at a sky-high valuation, and one that could potentially tap the public markets at a price many times greater than its current value.
Stitch Fix’ recent business expansions, plus-size & men, are growing fast.
At this year’s Shoptalk conference and the accompanying Code Commerce conference, Eric Colson, Stitch Fix’ ‘algorithm boss’, and the founder and CEO Katrina Lake provided insights into the company’s thinking. Watch the Code Commerce interview with Lake here: