Pomerantz LLP is investigating claims on behalf of investors of Stitch Fix, Inc. ("Stitch Fix" or the "Company") (NASDAQ: SFIX). The investigation concerns whether Stitch Fix and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On October 1, 2018, after the close of trading, Stitch Fix reported its financial and operating results for the fourth quarter of 2018, which fell short of projected active client growth expectations. Stitch Fix disclosed that the Company had signed up far fewer than expected new active clients during the quarter and that its 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 this news, Stitch Fix's stock price fell $15.69, or 35.16%, to close at $28.94 on October 2, 2018.