- Stitch Fix, a personal styling company, just filed for an IPO.
- It was profitable the last two years, and had $1 billion in revenue this year.
- It will trade under the ticker SFIX.
The company claims nearly 2.2 million "active clients" and revenue of nearly $1 billion for 2017. The company was profitable in both 2015 and 2016, with $730.3 million and $977.1 million in revenue, respectively. It claimed losses of under $1 million for 2017.
"We strongly believe that most existing retail constructs are insufficient and out of date," CEO Katrina Lake wrote in the filing. "I believe we are the best in the world at personalizing in apparel at scale, but I also know that we are just at the beginning of how powerful personalization can be."
Stitch Fix raised $42.5 million in venture capital from firms like Benchmark, Structure Capital, and Baseline Ventures. The company claims to be seeking $100 million from its IPO, though that is likely a placeholder number.
After stock liquidations in the last year, based on the share price, the company would be valued at just under $2 billion, according to Axios. Goldman Sachs and J.P. Morgan will serve in lead advisory roles on the IPO.
Stitch Fix launched in 2011. Customers fill out an online profile, telling the company a bit about their personal style: what they like to wear and how much they prefer it to cost. The service then sends out a box full of items to try on, complete with a prepaid return label. The styling fee per box is $20, but the fee goes toward anything the customer purchases in the box.
Stitch Fix encourages customers to buy more of the items in each box by offering a 25% discount if all five items are purchased. However, customers are not required to buy anything, and they can send all the items back if they choose, only paying the $20 fee.
The service is not a subscription, and customers can order a "fix" either on demand or by a set schedule. It launched as a women's only service, but now offers both men's and maternity services.
This post originally appeared on Business Insider.