Stitch Fix Stock Has Cratered. One Investor’s $100 Million Bet on a Comeback.

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Courtesy of Stitch Fix

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Stitch Fix stock is down in 2021, but one of the online apparel retailer’s biggest investors is buying up the bulk of the stock.

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Stitch Fix (ticker: SFIX) stock dropped 68% in 2021, compared to Two-point gains at Abercrombie & Fitch (ANF), Urban Outfitters (URBN), and Lululemon Athletica (LULU). stitch is fixed one component stock of the SPDR S&P Retail ETF (XRT), which is sporting a 42% gain for 2021.

Shares rose in January as Stitch Fix stock’s falling bets worsened. The bears tried to open all their negative bets in one go, leading to the downside pressure pushing the stock higher. In March, the story above came to light when Stitch Fix reported disappointing results and cut guidance for the fiscal second quarter. A month later, the company announced that founder Katrina Lake was stepping down as CEO starting August 1 to become executive chairman.

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Shares are down 65% so far under new CEO Elizabeth Spaulding, who was most recently President of Stitch Fix. In 2021, the company has choose your own outfit A la carte without styling services and fees.

Working Capital, which has offices in London and Singapore, disclosed in a Securities and Exchange Commission form on October 8 that its affiliates held 9.1 million Stitch Fix shares, an 11.4% stake,

Working Capital disclosed in other SEC filings that it was buying Stitch Fix stock from September 9 through December 28, $108.6 million payout For 3.68 million shares, an average price of $29.47 each. buying working capital because the share price has slipped; It was buying Stitch Fix stock in the $30s in September and October, but the average transaction prices of shares it bought in December ranged from the teens to the low $20s.

Working Capital did not respond to a request for comment. the firm now owns 10.9 million stitch fix shares, it became the company’s second largest shareholder after founder Lake. but working capital voting power is in the low single digits. Lake’s voting power was 29.3% as of November 3, through ownership of supervoting stock, and entities affiliated with Baseline Ventures and Benchmark Capital Partners had voting power of 19.3% and 10.8%, respectively, through supervoting shares.

The Inside Scoop features a regular baron covering stock transactions by corporate executives and board members—so-called insiders—as well as large shareholders, politicians, and other prominent figures. Because of their insider positions, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write and follow Ed Lin at [email protected] @BarronsEdLin,

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