Stitch Fix started in 2011 as Rack Habit, run out of Katrina Lake's apartment in Cambridge, Massachusetts. The idea was a box of clothes chosen for you. A stylist, guided by data about your size, taste and budget, picked the pieces. You kept what fit and sent back the rest. When the company went public in November 2017, malls were emptying and investors wanted to know which online sellers could make shopping personal and still turn a profit.

From Rack Habit to a Fix

Lake founded the company with Erin Morrison Flynn, a former J.Crew buyer. They soon moved it to San Francisco. The bet was that many people disliked shopping but liked getting dressed well. Stitch Fix asked customers detailed questions, then used algorithms to suggest items that human stylists chose from. Every return taught the system more about what each person wanted.

A Flat Debut, a Long Rebuild

Stitch Fix priced its shares at $15 in November 2017, valuing it at about $1.6 billion, and the stock closed its first day at $15.15. Lake handed the CEO job to Elizabeth Spaulding in 2021, then returned as interim chief in 2023. Matt Baer, a former Macy's executive, took over that June. The company left the United Kingdom to focus on America. It still trades on Nasdaq as SFIX, with about 2.3 million active clients in late 2025.

Cover: A Woman Sewing, Jean François Millet. Art Institute of Chicago, public domain. Chosen for a woman sewing (stitch).