Oct 19, 2017

Stitch Fix files for IPO

Via Stitch Fix

Stitch Fix, a personal shopping subscription service founded by Katrina Lake, has filed for an initial public offering. The target raise is listed as $100 million, but that's likely a placeholder figure. It plans to trade on the Nasdaq under ticker SFIX, with Goldman Sachs and J.P. Morgan serving as lead managers.

Financials: The San Francisco-based company's S-1 filing lists a net loss of just under $1 million on $977 million in revenue for the year ending July 29, 2017. It also reports having been profitable in both fiscal 2015 and fiscal 2016 on revenue of $342 million and $730 million, respectively. These are particularly strong numbers for a venture-backed e-commerce company coming to market, particularly with a subscription model.

Venture history: Stitch Fix raised around $47 million since being founded in 2011, from firms like Baseline Ventures, Benchmark, Structure Capital, Lightspeed Venture Partners and Western Technology investment.

Partial liquidity: Stitch Fix founder and CEO Katrina Lake sold $1 million of shares back to the company last December, while Julie Bornstein (who stepped down as COO over the summer) sold back $1.9 million in January. The share price tied to those sales would value the company (undiluted) at around $1.97 billion.

Go deeper

Centrist Democrats beseech 2020 candidates: "Stand up to Bernie" or Trump wins

Bernie Sanders rallies in Las Vegas, Nevada on Feb. 21. Photo: Mario Tama/Getty Images

Center-left think tank Third Way urgently called on the Democratic front-runners of the 2020 presidential election to challenge Sen. Bernie Sanders on the South Carolina debate stage on Feb. 25, in a memo provided to Axios' Mike Allen on Saturday.

What they're saying: "At the Las Vegas debate ... you declined to really challenge Senator Sanders. If you repeat this strategy at the South Carolina debate this week, you could hand the nomination to Sanders, likely dooming the Democratic Party — and the nation — to Trump and sweeping down-ballot Republican victories in November."

Situational awareness

Warren Buffett. Photo: Daniel Zuchnik/WireImage

Catch up on today's biggest news:

  1. Warren Buffett releases annual letter, reassures investors about future of Berkshire Hathaway
  2. Greyhound bars immigration sweeps
  3. U.S. military officially stops offensive operations in Afghanistan
  4. America's future looks a lot like Nevada
  5. Centrist Democrats beseech 2020 candidates: "Stand up to Bernie" or Trump wins

America's future looks a lot like Nevada

Illustration: Sarah Grillo/Axios

Today's Nevada caucus will foreshadow the future of American politics well beyond 2020.

Why it matters: The U.S. is in the midst of a demographic transformation, and the country's future looks a lot like Nevada's present. Today's results, in addition to shaping the 2020 race, will help tell us where politics is headed in a rapidly changing country.