Stitch Fix is showing signs of a comeback under CEO Matt Baer, with first revenue growth in 12 quarters and a forecast for a second consecutive quarter of growth. Despite a shrinking customer file, average order value has increased for seven consecutive quarters. Stock price is up 3% this year after a 95% drop from its high in 2021.

After a successful IPO in 2017, Stitch Fix struggled to retain customers in the crowded subscription box market. By 2022, the company faced layoffs and declining value. CEO Elizabeth Spaulding stepped down in 2023, leading to Katrina Lake’s return as interim CEO.

Matt Baer, Stitch Fix’s current CEO, has implemented changes to drive growth, including more flexible options for customers and streamlining operations. The company has focused on private brand development and AI technology to enhance the customer experience. Baer remains actively involved in customer feedback and styling fixes.

Stitch Fix’s turnaround faces challenges as the apparel industry evolves. Mizuho Securities predicts a slowdown in growth as the company expands into larger fixes. Analysts offer mixed reviews, with some cautious about sustaining growth and others optimistic about the company’s trajectory. Despite challenges, Stitch Fix’s improvements are starting to show results.

Read more at CNBC: How pandemic darling Stitch Fix returned to growth