Earlier this month, Stitch Fix announced it was cutting approximately 15% of its salaried positions, which adds up to more than 300 employees. This was announced following the company’s third-quarter loss, down by 8% year over year. That’s a net loss of $78 million. And the stock tanked, of course. While the company had traded as high as $65, as of the announcement of the layoff, it dropped as low as $6.18, according to a Sourcing Journal report. As of January 2022, Stitch Fix had eight distribution centers in the US, building off its first one opened in San Francisco in 2013.

To use Stitch Fix, users create an account and take a quiz to help identify their clothing preferences. Then a Stitch Fix stylist chooses an initial pieces that reflect the style, fit, and price points the user has identified, along with some expert fashion guidance. If the consumer decides to return everything, they are charged a $20 styling fee.

In May, just weeks before the fall, the site My Subscription Addiction ranked Stitch Fix as the best clothing subscription for both women and men, out of a list of 22 they reviewed based on a reader survey. Consumers can choose a frequency for automatic shipments, including every two to three weeks, every month, every other month, or every three months. They can just order a new box when they are ready. Nonetheless, the revenue decline is probably indicative of this market as a whole as people are moving around more freely, doing more in-store shopping, and also, with inflation worries and high gas prices, perhaps cutting back a bit on their wardrobe budget.