PRNewswire 8-Nov-2018 12:27 PM
NEW YORK, Nov. 8, 2018 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of Stitch Fix, Inc. ("Stitch Fix" or the "Company") (NASDAQ:SFIX). Investors who purchased Stitch Fix common stock between June 8, 2018 and October 1, 2018 (the "Class Period") may be affected. A complaint has been filed in the United States District Court for the Northern District of California against Stitch Fix and certain executives on behalf of investors of Stitch Fix common stock during the Class Period.
The complaint alleges that on October 1, 2018, after the market closed, Stitch Fix reported its fourth quarter 2018 financial results, which fell short of projected active client growth expectations. Further, the Company disclosed that it had signed up far fewer than expected new active clients during the fourth quarter, which ended two months earlier on July 28, 2018. According to the complaint, Stitch Fix's active client growth had plummeted by 70% quarter-over-quarter, falling from 180,000 new additions in the third quarter of 2018 to just 54,000 in the fourth quarter of 2018.
Following the Company's October 1, 2018 disclosures, the price of Stitch Fix common stock fell $15.69 per share, more than 35%, to close at $28.94 per share on October 2, 2018.
According to the complaint, throughout the Class Period, the defendants made materially false and misleading statements and/or failed to disclose that (1) the Company's active client growth had slowed to a crawl, (2) the Company had completely shut down its television advertising campaign for 10 of the 13 weeks in the fourth quarter of 2018, and (3) 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 proposed Class, you may move the court no later than December 10, 2018 to serve as a lead plaintiff for the purported class. You need not seek to become a lead plaintiff in order to share in any possible recovery. If you would like to discuss the complaint or our investigation, please contact us by emailing firstname.lastname@example.org or by calling 800-290-1952.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about this Notice, the action, your rights, or your interests, please contact:
Donald R. Hall
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
Fax: (212) 687-7714
Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
Fax: (415) 772-4707
SOURCE Kaplan Fox & Kilsheimer LLP
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