LOS ANGELES, Oct. 19, 2022 (GLOBE NEWSWIRE) — The law firm of Portnoy is informing investors of Stitch Fix, Inc. (NASDAQ: SFIX) that a class action lawsuit has been filed on behalf of investors. Stitch Fix investors who have lost money investing are encouraged to do so Contact Lesley Portnoy, Esq.

Investors are encouraged to contact an attorney Lesley F Portnoyby phone 844-767-8529 or E-mail: [email protected] to discuss your legal rights, or click here to join the case about www.portnoylaw.com. Portnoy Law Firm can provide a free case assessment and discuss investors’ options for making claims to recover their losses.

According to the complaint, Stitch Fix originally sold products as a “Fix” box, through which the customer received a monthly box of items selected by a personal stylist. The customer does not know exactly which items he has received, but has the option of returning the items he does not want.

On December 8, 2020, Stitch Fix launched the “Freestyle” program – a new direct purchase program that allowed customers to choose which items they would like to purchase from the start. Related to this announcement, Stitch Fix promoted the Freestyle program as a way to “expand our addressable market, deepen customer engagement and increase wallet share over time.” The company also stated that Freestyle would “serve as another catalyst as we acquire new customers, convert potential customers and reactivate expired customers.”

During class time, the defendants touted that the two programs were synergistic and repeatedly denied claims that the Freestyle program could cannibalize its old fix business. However, on December 7, 2021, Stitch Fix first admitted that the company had downplayed the extent of its transition from the subscription-based Fix model to the retail-based Freestyle model. Stitch Fix went on to admit that the company experienced some “short-term cannibalization” of new customers opting to use…