Stitch Fix, the subscription clothing startup that launched in 2011, filed for an initial public offering today. As MarketWatch reports, the company’s SEC filing reveals that it was targeting for $100 million in proceeds (though this might change in future filings) and its financial disclosures reveal a company that has very strong revenues.
In 2014, it brought in $73.2 million, and by the 2017 fiscal year, it had hit $977.1 million. Stitch Fix was profitable in 2015 and 2016, but went back to a loss of roughly $600,000 this year.
As Bloomberg’s Shira Ovide points out on Twitter, one of the most impressive things about Stitch Fix is that while it is bringing in close to $1 billion in revenue, it has only raised a total of $42.5 million in its entire history. That’s much more sustainable growth than many high-growth fashion startups like Bonobos, which raised more than $127 million in funding, but ended up selling itself to Walmart.
Ovide also mentions that Stitch Fix is trying to pitch itself first as a technology company, and second as a fashion brand. She counted that the word “data science” appears 64 times in its IPO.
"Data science" appears 64 times in the Stitch Fix IPO. This is the "We want a tech company valuation, not an e-commerce valuation" pitch.
— Shira Ovide (@ShiraOvide) October 19, 2017