Stitch Fix, the algorithm-based subscription fashion brand and current retail darling, is building up its marketing muscle. The San Francisco-based company, which went public late last year, has hired Deirdre Findlay, most recently senior director of global hardware marketing at Google, as its new chief marketing officer.
Findlay is the first CMO for the company in over four years and its first since it went public. Marketing had been lead by Chief Operating Officer Mike Smith.
The news follows the brand's strong earnings report on Thursday. For the third quarter, Stitch Fix reported a 29 percent increase in net revenue to $316.7 million, compared with the year-earlier period, and net income of $9.5 million. Most tellingly, however, the company said it saw a 30 percent year-over-year growth in active client accounts, which currently number 2.7 million. To continue such growth, the company is fine-tuning its marketing strategy.
Katrina Lake, chief executive and founder, noted that Stitch Fix is focused on increasing brand awareness and its performance marketing capabilities.
"Looking forward, as we think about how to take the next step in our marketing, it's really around how can we bring algorithmic and personalization capabilities into our email in a one-to-one way, the same way we do with our fixes," she said on an earnings call with analysts.
In the quarter, Stitch Fix spent $25.2 million on advertising, or 8 percent of net revenue—up 18 percent from the year-earlier period.
Stitch Fix, which has been bringing more of its marketing from outside agencies in-house, also announced it is debuting a kids business, where the company sees more marketing opportunities.
The company worked with San Francisco agency Muh-tay-zik Hof-fer on its first TV spot last year, but does not have an agency-of-record, according to a spokeswoman.