Stitch Fix Announces New Employee Inducement Grant

Rhea-AI Summary

Stitch Fix (NASDAQ:SFIX) announced on May 17, 2024, the granting of restricted stock units (RSUs) to a new employee, effective May 15, 2024. The RSU grant covers 118,722 shares of the company's Class A common stock. One-fourth of the RSUs will vest on June 12, 2024, with the remaining shares vesting in three equal quarterly installments. The grant is part of Stitch Fix's Amended and Restated 2019 Inducement Plan, aimed at attracting new talent. The plan was approved by the company's board of directors in April 2022 under Nasdaq's Rule 5635(c)(4).

Positive

• Stitch Fix's new RSU grant aims to attract top talent, potentially enhancing workforce quality.
• The RSUs will vest in a structured manner, aligning employee interests with company performance over time.
• Approval of the inducement plan by the board of directors ensures governance and compliance with Nasdaq rules.

Negative

• Issuing 118,722 shares may lead to shareholder dilution.
• The vesting schedule could result in a gradual increase in outstanding shares, affecting share value over time.

SAN FRANCISCO, May 17, 2024 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that effective May 15, 2024, the compensation committee of the company’s board of directors granted restricted stock units (RSUs) to one new employee to acquire 118,722 shares of the company’s Class A common stock. One fourth of these restricted stock units will vest on June 12, 2024, and the remainder will vest in 3 equal quarterly installments of 1/4th over the next three subsequent quarterly RSU vesting dates, subject to the recipient's continuous service on each vesting date. The RSUs were granted pursuant to, and are subject to the terms of, the Stitch Fix, Inc. Amended and Restated 2019 Inducement Plan and forms of stock option and RSU agreements thereunder, which were approved by the company's board of directors in April 2022 under Rule 5635(c)(4) of the Nasdaq Global Market for equity grants to induce new employees to enter into employment with the company.

About Stitch Fix, Inc.

Stitch Fix combines the human touch of expert stylists with the precision of advanced data science to make online personal styling accessible to everyone. Stitch Fix helps millions of clients across the United States find clothing and accessories they love through a unique model that can extend far beyond the closet to define the future of shopping. For more, visit https://www.stitchfix.com.

IR Contact: Hayden Blair ir@stitchfix.com

PR Contact: Liz Nunan media@stitchfix.com

FAQ

What is the significance of Stitch Fix's new employee inducement grant announced on May 17, 2024?

Stitch Fix granted RSUs for 118,722 shares of Class A common stock to a new employee to attract top talent.

When will the RSUs granted by Stitch Fix vest?

One-fourth of the RSUs will vest on June 12, 2024, with the remainder vesting in three equal quarterly installments.

How many shares are covered by the new RSU grant from Stitch Fix?

The new RSU grant covers 118,722 shares of Stitch Fix's Class A common stock.

What is the purpose of Stitch Fix's Amended and Restated 2019 Inducement Plan?

The plan aims to attract new employees by issuing equity grants, ensuring compliance with Nasdaq Rule 5635(c)(4).

Who approved the terms of Stitch Fix's RSU agreements?

The terms were approved by Stitch Fix's board of directors in April 2022.