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Episode 49: The Stitch Fix IPO
Acquired
Stitch Fix Is a Great Example of a Company That's Growing Within a Small Segment
Stitch Fix is a great example of a company that basically grew within a narrow segment and not very narrow. In 2016, in fiscal 2016, where they do $730 million in revenue, they spend $25 million in advertising. And then in 2017, fiscal 2017, that jumps almost 3X the advertising spend up to over $70 million. So you can definitely see these dynamics at play where either their existing customers are churning or ordering at lower rates.
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