April 14, 2021 at 11:36AM

Katrina Lake, founder of online personal styling service Stitch Fix, will step down in August from her CEO position, a letter to the company says, with new CEO Elizabeth Spaulding stepping in.

Lake will now take on the role of the Executive Chairperson.

Spaulding had previously joined the company in the role of President in January of 2020.

Lake writes that the company faces big challenges ahead with “a massive share shift online and new expectations that consumers have to experience the world in a personalized and authentic way.”

“Apparel retail is undergoing a reinvention, and Stitch Fix is exceedingly well-positioned to lead through it. This moment of transformation in our business and our industry makes it the right time to think about the next generation of leadership at our company.”

Spaulding’s impact on the business has been “broad and significant,” with Lake citing her work with the front-facing consumer and technology teams, saying she has “accelerated the next generation of our service.”

Lake writes that she’ll be continuing work on numerous projects the company is doing, including future marketing efforts and helping to identify and enable company partnerships.

Stitch Fix’s earnings from a recent quarter show that the company has been sailing on rocky waters, with boosted costs and dampened customer growth. The company reported a $21 million loss in the quarter, faced with rising shipping costs and inventory rates, along with higher benefits and comp figures.

The setbacks overshadowed the company’s 12 percent gain in revenues and the 110,000 new customers it added in the three months ending Jan. 30.

And although the per-share loss of 20 cents wasn’t as drastic as expected, the revenues of $504 million were lower than the average estimate of $512 million.

But despite all of that, Lake said the company was “well-positioned” to capture the ongoing digital shift for retail, in which 50 percent of apparel is bought online.

Stitch Fix Founder Katrina Lake To Step Down Aug 1 …

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