Stitch Fix investors may receive additional information about the case by clicking the link "Submit Your Information" above.
According to the complaint, Stitch Fix is an online retail fashion subscription service. Stitch Fix purchases clothing, shoes and accessories from name-brand manufacturers and designs more in-house that it has manufactured. Stitch Fix personnel then select and deliver curated boxes of items to “clients” to try on, buy what they like, and return the rest. While some or all of the items can be returned free of charge, clients are incentivized to accept the entire selection through a 25% price discount that is only applied if the client accepts the entire shipment.
The Class Period commences on June 8, 2018. On June 7, 2018, after the close of trading, Stitch Fix issued a press release and letter to shareholders announcing its third quarter of 2018 financial results for the period ended April 28, 2018. The press release emphasized that Stitch Fix had experienced growth in active clients, to 2.7 million, an increase of 30% year over year.
The complaint alleges that on October 1, 2018, after the close of trading, Stitch Fix issued a press release announcing its financial results for fourth quarter of 2018, the period ended July 28, 2018. In the press release, Stitch Fix reported 2.7 million active clients, disclosing that its new active client growth had stalled throughout 4Q18. Following this news, the price of Stitch Fix common stock fell more than 35%, or $15.69 per share.
The complaint alleges that throughout the Class Period, the defendants made false and/or misleading statements and/or failed to disclose that: (a) Stitch Fix’s active client growth had slowed to a crawl; (b) Stitch Fix had completely shut down its television advertising campaign for 10 of the 13 weeks in fourth quarter of 2018, dramatically decreasing the number of new active client additions; and (c) as a result, the company’s current business metrics and financial prospects were not as strong as it had led the market to believe during the Class Period.
If you are a member of the class described above, you may no later than December 10, 2018 move the Court to serve as lead plaintiff of the class, if you so choose.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an inactive class member.
Kessler Topaz Meltzer & Check, LLP has not filed a complaint in this matter. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.
CONTACT:
Kessler Topaz Meltzer & Check, LLP
James Maro, Esq. or Adrienne Bell, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@ktmc.com