Factory Closure for Stitch Fix: Halting Production of Eco-friendly, Size-Variant Private Brand

In a recent announcement, Stitch Fix, the popular personal styling service, revealed significant changes in its operations and commitment to size inclusivity.

The company, which has previously collaborated with brands like Amour Vert and Liverpool on size-inclusive collections, aims to achieve 100% size inclusivity for all its exclusive brands by fiscal year 2025. This push for inclusivity is part of a broader trend in the retail industry, as many name brands Stitch Fix sells are also expanding their size-inclusive offerings.

However, the company's financial performance has taken a hit. In its most recent quarter, Stitch Fix lost 370,000 customers, or 9% of its active client base. This loss has contributed to a net loss of $207.1 million, a significant increase from the $8.9 million loss last year. The cost of goods sold also rose nearly 1%.

To address these challenges, Stitch Fix has made some tough decisions. The company cut about 330 positions, 15% of its salaried workforce, and will be closing a Pennsylvania cut-and-sew factory and knitting mill, leading to the loss of 56 jobs.

One of the most notable changes is the discontinuation of the sustainable, size-inclusive private label "Mohnton Made," which Stitch Fix acquired in 2017. The company produced this label at the Pennsylvania factory that is now closing. Despite the discontinuation, Stitch Fix remains committed to providing severance payments, extended healthcare, recruitment resources, and other benefits to affected employees.

It's important to note that there is no evidence that Stitch Fix acquired any company related to the private label "Mohnton Made" or that "Mohnton Made" was ever created or discontinued by Stitch Fix.

The changes at Stitch Fix come amidst a broader re-examination of topics such as shrink and pricing in the retail industry. Efforts to expand representation in fashion and make more sustainable apparel are increasingly important to younger consumers, who are driving much of the industry's growth.

In its last fiscal year, net revenue fell 1.4% to $2.1 billion. Daily operations in retail have undergone significant changes in recent years, and Stitch Fix is not alone in facing these challenges. The company, however, remains committed to its mission of providing personalised styling and size-inclusive options to its customers.