Company: Stitch Fix, Inc.
Description: They are reinventing the shopping experience by delivering one-to-one personalization to our clients through the combination of data science and human judgment.
Shares: 10 million
Price Range: $18.00-$20.00
Trade Date: 11/17
Underwriter(s): Goldman Sachs & Co., J.P.
Co-Manager(s): Barclays, RBC Capital Markets, Piper Jaffray, Stifel, William Blair
Terms Added: 11-6-17
Link to S-1/A Prospectus
Link to Retail Roadshow
Business: Their mission is to inspire their clients to look, feel and be their best selves.
Their clients are happiest, and in turn their business succeeds, when they successfully personalize Fixes that meet their fit, style and price preferences. Since our founding in 2011, they have focused on developing a personal styling service that utilizes data science to transcend the traditional brick-and-mortar and eCommerce retail experience. In 2011, they launched their Women’s business.
Stitch Fix takes their company public
Since 2013, they have opened five fulfillment centers across the United States and have grown their stylist team to over 3,400 employees. By 2014, their business was generating positive operating cash flows, allowing them to expand into new categories. From 2015 to 2017, they entered into the Petite, Maternity, Men’s and Plus categories and began offering shoes and accessories.
Financials: They have scaled their business rapidly, profitably and in a capital-efficient manner, having raised only $42.5 million of equity capital since inception.
They have achieved positive cash flow from operations on an annual basis since 2014, while continuing to make meaningful investments to drive growth. In 2015, 2016 and 2017, they reported $342.8 million, $730.3 million and $977.1 million in revenue, respectively, representing year-over-year growth of 113.0% and 33.8%, respectively. They had net income of $33.2 million in 2016 and a net loss of $0.6 million in 2017, and reported $72.6 million and $60.6 million in adjusted EBITDA in 2016 and 2017, respectively.
As of August 1, 2015, July 30, 2016 and July 29, 2017, they had 867,000 active clients, 1,674,000 active clients and 2,194,000 active clients, respectively, representing year-over-year growth of 93.1% and 31.1%, respectively.
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