by Daniel Shvartsman
Investing.com - Stitch Fix (NASDAQ:SFIX) rose on Thursday on news that a large shareholder has been upping their stake in the personal clothing retailer.
Stitch Fix's shares were up 7.7% in late Thursday trading after a filing revealed that Working Capital Advisors had become a 10% shareholder. The firm had previously filed about a 6.5% position in Stitch Fix in February, and per the latest filing, has been adding steadily over the past three months, including after Stitch Fix's recent earnings report.
Stitch Fix has had a tumultuous 2021, soaring to over $100/share on the back of optimism over their December 2020 earnings report and then a short squeeze that had them caught up with the January meme stock rally. Both the market frenzy and the excitement over Stitch Fix's core business has faded, as founder/CEO Katrina Lake stepped down earlier this year. New CEO Elizabeth Spaulding has tried to shift the company's strategy away from reliance on a curated "fix" of five items handpicked by a data algorithm and a personal stylist together, and towards direct buying formats. So far the returns have been mixed at best, as their report two weeks ago had strong numbers for the previous quarter but muted guidance that sent shares into the teens. Even with today's spike, Stitch Fix is well off of pre-earnings levels, which were already 52-week lows.
Working Capital Advisors appears to be a London and Singapore based company run by Kenneth Chan, and Stitch Fix is their only disclosed position.