Fast Company has reported that Stitch Fix's customers aren't shopping like they used to. After going public in the fall, the company boasted profitability and raised 42 million dollars in capital. However, it doesn't look like the subscription clothing startup service has been able to hold onto its momentum. Stitch Fix appears to have a problem with customer retention and new customers aren't spending as much compared to their initial round of customers.

According to a report by the Information, customers who used Stitch Fix for two years spend less in their second year. New users reportedly spend less, with customers who joined in Q1 2017 spending 172 dollars on average, 6 dollars less than users who joined in Q1 2016, and that gap widened to 13 dollars by Q4, with customers spending 195 dollars on average.

Potential causes for decrease in spending include Stitch Fix users tweaking their price preferences while still remaining customers. According to Stitch Fix, their retention rate appears to be promising. Their repeat rate was 83 percent in 2016 and 86 percent last year.

StitchFix is set to release its yearly earnings report soon, so whether or not they have actually maintained a strong customer base and if their customers are really shopping will soon be seen.





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