Stitch Fix tumbles on naming former Macy's executive as CEO
14/06/2023 18:32
(Updates)
** Shares of online personalized styling services co Stitch
Fix Inc SFIX.O down about 10% at $4.30 in afternoon trade
** Stitch Fix names former Macy's M.N executive Matt Baer
as its CEO, effective June 26
** Baer takes over from founder Katrina Lake, who had
assumed top role on an interim basis in January after Elizabeth
Spaulding had stepped down as CEO
** SFIX says Lake would continue in her role as executive
chairperson of the board
** "We don't personally know Mr. Baer, but we're surprised
at the magnitude of the stock reaction today," wrote Wedbush
analyst Tom Nikic in a note; raises PT by $0.5 to $4.5
** However, brokerage adds it was a wise move to hire an
executive with experience in apparel industry, as "it's becoming
increasingly clear that selling clothes online isn't as easy a
task as it once seemed"
** 15 of 17 brokerages rate the stock "hold" and two rate
"sell"; median PT is $4.55 - Refinitiv
** Including session's loss, SFIX stock rose ~39% YTD
(Reporting By Akshita Toshniwal and Granth Vanaik in Bengaluru)
((Akshita.Toshniwal@thomsonreuters.com))