Good morning, Broadsheet readers! Kamala Harris visits Highland Park, Wimbledon activists won’t let tennis forget about Peng Shuai, and Stitch Fix’s CEO has a turnaround plan. Have a lovely Wednesday.
– Fix this. Stitch Fix CEO Elizabeth Spaulding took over from founder Katrina Lake just over a year ago, as the company ramped up an ambitious strategy to move beyond the personal-styling box “Fixes” that launched its business.
Since then, the personal styling company has encountered some major hurdles on the road to becoming a more comprehensive shopping destination. Its stock was trading at $5.27 at close of market yesterday, down from $63 a year ago. A month ago, the company confirmed it was laying off 15% of its staff. The company reported year-over-year losses in revenue and 200,000 fewer clients than a year ago.
Spaulding recently sat down with Coins2Day‘s Susie Gharib for a video interview where she discussed her turnaround plan. “We’re in the middle of a transformation,” she told Susie in an interview released this morning. “That shift from our historic model to our destination of shopping and styling is taking time and it’s been bumpy. … We know we can do better.”
Stitch Fix benefited from a COVID boost, with more consumers shopping online. Now, as many shoppers return to retail stores, Stitch Fix has to find a longer-term way to support its business. “More people were discovering and starting with Stitch Fix,” Spaulding says. “That said, behaviors have changed.”
Spaulding’s top priority is bringing new clients to Stitch Fix. Active clients, she says, are still spending with the company; the problem is that there aren’t enough of them. Stitch Fix’s pivot to more traditional e-commerce comes with a total addressable market that’s two to three times the size of its original market for personal styling boxes. But based on the company’s financial results so far, outside observers may question whether enough customers want the new version of Stitch Fix the company has gone to such lengths to build.
Still, bringing more clients to Stitch Fix is a “clear and simple” goal—which is also part of the philosophy the longtime Bain executive brings to a difficult chapter. “Transforming and evolving a company is complex, hard work,” she says. But it helps to make “the spirit of what we’re doing incredibly simple and clear to our teams.”
Watch Susie’s full interview with the Stitch Fix CEO here.
Emma Hinchliffe
[email protected]
@_emmahinchliffe
The Broadsheet is Coins2Day’s newsletter for and about the world’s most powerful women. Today’s edition was curated by Paige McGlauflin. Subscribe here.
ALSO IN THE HEADLINES
- At the scene. Vice President Kamala Harris on Tuesday visited Highland Park, Illinois, where a shooter killed seven people at a Fourth of July parade the day before. "The whole nation should understand and have a level of empathy to understand that this can happen anywhere, in any peace loving community," she said. CNN
- Call to action. Democrats—from party leadership to celebrity endorsers—have become increasingly frustrated with the White House's response to the reversal of Roe v. Wade. Some of the criticism is sparked by a lack of preparation for the SCOTUS decision day-of, a last-minute scheduling that failed to gather Democratic governors, and what's perceived as an overall lack of urgency and action. CNN
- Big question. Wimbledon security stopped and searched four people at the tournament wearing t-shirts that said "Where is Peng Shuai?" The retired Chinese tennis star has made few public appearances since accusing a high-ranking Communist Party official of sexual assault last year. The activists said tournament officials permitted them to stay but asked them not to approach spectators or discuss Peng. CNBC
- Anti-LBGTQ wave. Ten anti-LGBTQ bills went into effect across six states on Friday, including Florida’s “Don’t Say Gay” bill prohibiting classroom discussions of gender and sexuality. Alabama passed a bill at the eleventh hour requiring students to use bathrooms that correspond with their gender assigned at birth and enacted education policies similar to Florida’s. Legislation restricting transgender students’ participation in sports went into effect in Louisiana, South Dakota, and other states. The 19th*
MOVERS AND SHAKERS: Janai Norman has been named weekend co-anchor on ABC’s Good Morning America. Jennifer Jones has joined nonprofit organization Rotary International as its first female president. The Washington Post has appointed Johanna Mayer-Jones as its head of global client and agency partnerships.
IN CASE YOU MISSED IT
- Expanding access. Abortion rights activists want the FDA to expand the approved use of the abortion pill mifepristone to include miscarriages, and allow patients to obtain the medication without a prescription. Expanding its approved use could make it more difficult for prosecutors in antiabortion states to investigate medical practitioners who provide the pills. However, the FDA has said Danco, the pharmaceutical company that produces the medication’s brand name version, would need to provide the data supporting this expanded use—and Danco said it won’t pursue the idea. Wall Street Journal
- New job description. Queen Elizabeth’s official responsibilities were changed for the first time in over a decade. According to Buckingham Palace’s official annual report released last week, the Queen’s role, which previously entailed 13 responsibilities, is now divided into serving as the head of state and as the head of nation, a “symbolic” role. The Queen, who is suffering from mobility issues at age 96, has passed additional responsibilities onto heir Prince Charles. Vanity Fair
- Fenty fortune. Rihanna is officially America’s youngest self-made female billionaire, taking the title from the Kardashians. The 34-year-old singer-turned-entrepreneur has amassed a $1.4 billion net worth through Fenty Beauty, Fenty Skin, and Savage X Fenty. She ranks at No. 21 on Forbes’ annual list of America’s richest self-made women, and is the only billionaire under 40. CNBC
- Food insecurity disruptor. One-fourth of Black communities experience food insecurity, three times higher than white households. Goodr, a technology platform startup founded by Jasmine Crowe, wants to eliminate that insecurity by partnering with businesses to reduce and eliminate food waste. The company recently closed its Series A funding, securing $8 million from investors like Emerson Collective, Backstage Capital, and Christiana Musk. Essence
ON MY RADAR
Jurnee Smollett’s heart is healing Bustle
A Ukrainian ballerina goes to war Economist
A South Texan’s wild, life-affirming quest to break a national birding record Texas Monthly
Inclusive language around abortion costs us nothing and makes the movement stronger Vogue
PARTING WORDS
"This has been an amazing comeback."
- Competitive eater Miki Sudo, who won the Fourth of July Nathan's hot dog eating contest in New York. She sat out last year's contest while she was pregnant.
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