Stitch Fix shares were down over 3% Tuesday afternoon after the company announced that founder Katrina Lake would step down as CEO.
According to a news release, Elizabeth Spaulding will start as chief executive on Aug. 1.
Several years ago, Lake founded the online styling service when she was a student at Harvard Business School. Since then, it has grown to a business with about 4 million clients in the United Kingdom and about 8,000 employees. She became the youngest woman to take a company public when Stitch Fix debuted on the stock market three years ago.
In a news release, the company said Lake will remain in the company as the executive chairperson of Stitch Fix ’ s board. It said that she will also focus on the personal styling service's sustainability efforts and marketing efforts.
In a company-wide email, Lake said she was ready to pass the baton on to her successor.
The powerful future vision that Elizabeth has already had combined with the compelling future vision she has mapped out and is leading us toward, make this the right time for a leadership transition that will bring the next generation for Stitch Fix to our business, our people and our clients, she said.
This story will continue to develop and is going to be updated.