Dive Brief:
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Stitch Fix Chief Technology Officer Sachin Dhawan left the company in mid-July, according to a filing with the Securities and Exchange Commission last week.
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In an email, the company said it has begun the search for his replacement, with tech team leaders filling in during the interim.
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Dhawan arrived from Visa just last year, filling a post at the apparel box service that had been vacant since 2020. “We thank Sachin for his many contributions to Stitch Fix and wish him well for the future,” a spokesperson said by email Tuesday.
Dive Insight:
In the age of e-commerce and data-driven insights, the chief technology officer role has grown in importance for the retail industry. At Stitch Fix, which touts its algorithm as an equal partner to its human stylists, it’s especially key.
“Our talented technical teams and our expert stylists are at the heart of what differentiates Stitch Fix,” the company spokesperson said. “We are deeply committed to continuing to invest in technical talent alongside the AI and data science capabilities which play an integral role in our ability to offer our clients a uniquely personal service now and in the future.”
Cathy Polinsky, who was tapped as CTO in 2016 when Stitch Fix was still a private startup, said in 2017 that Stitch Fix is “one of the most data-centric companies that I’ve ever worked in, and we use experimentation and data science for everything that we do.”
The company has operated without anyone in the position, however. Polinsky exited four years after her arrival, and it would take the company nearly two years to name her replacement.
It’s not clear how far tech can go in supplying Stitch Fix’s stylists, buyers and customers with satisfactory merchandising suggestions. Last year some stylists complained that the company directed them to downplay the algorithm’s role in suboptimal outcomes. The model has been abandoned by Nordstrom and ThredUp, among others.
Last year the company’s revenue fell and losses widened. In its most recent quarter, net revenue fell 20% year over year to $395 million, number of active clients fell 11% to 3.48 million, and net revenue per active client fell 9% to $502. However, net loss narrowed to $21.8 million from last year’s $78 million net loss.
Dhawan’s departure could simply signal the start of newly arrived CEO Matt Baer’s own team-building. Baer left his post as Macy’s chief customer and digital officer in June, replacing founder Katrina Lake. She had retaken the top post only in the interim, after the abrupt exit of former Bain consultant Elizabeth Spaulding in January. At that time the company also announced it was laying off 20% of its corporate workforce, amid a shift in focus from growth to profitability.
