NEW YORK, Oct. 11, 2018 — Bragar Eagel & Squire, P.C. announces that a class action lawsuit has been filed in the U.S. District Court for the Northern District of California on behalf of all persons or entities who purchased or otherwise acquired Stitch Fix, Inc. (NASDAQ: SFIX) securities from June 8, 2018 through October 1, 2018 (the “Class Period”). Investors have until December 10, 2018 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information about Stitch Fix’s business and prospects, including that its active client growth had slowed dramatically and that defendants had shut down Stitch Fix’s television advertising campaign for much of the fourth quarter of 2018.
On October 1, 2018, after the close of trading, Stitch Fix reported its fourth quarter 2018 financial results, which fell short of projected active client growth expectations. In the Company’s press release, it reported 2.7 million active clients, disclosing that its new active client growth had stalled throughout the fourth quarter. During the conference call held with investors later that evening, Stitch Fix conceded that, despite having reported on June 7, 2018, which was already a third of the way through the 2018 fourth quarter, that it had grown active clients by 180,000 quarter-over-quarter to 2.7 million, its active client growth rate had declined dramatically during the fourth quarter and remained virtually flat. Also during the call, defendants disclosed that Stitch Fix had “temporarily ceased [its] national TV campaign for 10 weeks” during the 13 weeks of the 2018 fourth quarter, purportedly to “measure channel efficacy,” conceding that the decision had had a negative impact on new client growth during the quarter.
On this news, the price of Stitch Fix stock fell more than 35%, closing at $15.69 per share on October 2, 2018.
If you purchased Stitch Fix securities during the Class Period or continue to hold shares purchased before the Class Period, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at [email protected], or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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Bragar Eagel & Squire, P.C. is a New York-based law firm concentrating in commercial and securities litigation. For additional information concerning the Stitch Fix lawsuit, please go to https://bespc.com/sfix/. For additional information about Bragar Eagel & Squire, P.C. please go to www.bespc.com.