What happened
Shares of Stitch Fix (SFIX +5.58%) were falling today after investors jeered the company's selection for its next CEO.
In a press release this morning, the company said that Matt Baer, a former Macy's executive, would take the reins of the struggling personalized styling service. As of 2:34 p.m. ET, the stock was down 12.4% on the news.
NASDAQ: SFIX
Key Data Points
So what
Stitch Fix said Baer would take over from Founder Katrina Lake, who had been serving as interim CEO since the ouster of Elizabeth Spaulding at the beginning of the year. The business performance and the stock had tumbled under Spaulding's watch.
Baer is the former Chief Customer and Digital Officer at Macy's. He also served as Vice President of eCommerce at Walmart.com and started in the industry at his family's retail business, Baers Furniture.
Baer said: "I'm incredibly excited to join Stitch Fix as CEO. As someone with retail in my DNA, I've long admired what Katrina has built with Stitch Fix -- fusing AI [artificial intelligence] with stylists to offer the most convenient shopping experience out there today."
Investors seemed to balk at the choice, however, perhaps thinking that Baer is not the kind of transformative leader the company needs. With Stitch Fix down more than 95% from its earlier peak, the business could use a leader who can breathe new life into it.
Now what
Baer does bring a diverse range of retail experience to Stitch Fix, which should benefit the company. At this point, though, it's too early to judge him, but the apparel stock is clearly in need of a quick turnaround plan. The company just posted another quarter of declining sales, showing that customers are continuing to lose interest in the styling service.
Turning around the business won't be easy, but anything is possible with the right person in charge. Baer will take over as CEO and join the board on June 26.
