Stitch Fix Announces New Employee Inducement Grants

Rhea-AI Summary

On July 18, 2022, Stitch Fix announced the granting of restricted stock units (RSUs) to 23 new employees acquiring a total of 1,511,416 shares of Class A common stock. The RSUs will vest in varying schedules: one sixth on September 15, 2022, followed by 15 quarterly installments for some, and one fourth on September 15, 2022, followed by three quarterly installments for others. These grants are aligned with the company's 2019 Inducement Plan to attract new talent.

Positive

• Strengthened workforce with 23 new employees receiving RSUs, enhancing company talent.

Negative

• Large share grant may lead to potential dilution of existing shareholders' equity.

SAN FRANCISCO, July 18, 2022 (GLOBE NEWSWIRE) -- Stitch Fix, Inc. (NASDAQ:SFIX), the leading online personal styling service, today announced that effective July 15, 2022, the compensation committee of the company’s board of directors granted restricted stock units (RSUs) to 10 new employees to acquire an aggregate of 1,080,314 shares of the company’s Class A common stock. One sixteenth of these restricted stock units will vest on September 15, 2022, and the remainder will vest in 15 equal quarterly installments of 1/16th over the next fifteen (15) subsequent quarterly RSU vesting dates, subject to the recipient's continuous service on each vesting date. In addition, effective July 15, 2022, the compensation committee of the company’s board of directors granted restricted stock units to 13 new employees to acquire an aggregate of 431,102 shares of the company’s Class A common stock. One fourth of these restricted stock units will vest on September 15, 2022, 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. 2019 Inducement Plan and forms of RSU agreements thereunder, which were approved by the company's board of directors in October 2019 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 is the world's leading online personalized shopping and styling experience. Our unique business model combines the human touch of expert Stylists with the precision of advanced data science. Since our founding in 2011, we’ve served as a trusted style partner to millions of people, helping adults and kids get dressed every day feeling like their best selves. The Stitch Fix team is building a transformative and inclusive ecommerce model, an ecosystem of shopping experiences based on convenience and guided discovery that makes it radically simple and delightful for customers to discover and buy what they love. For more, visit https://www.stitchfix.com.

IR Contact: ir@stitchfix.com

PR Contact: media@stitchfix.com

FAQ

What is the significance of the RSU grants by Stitch Fix on July 15, 2022?

The RSU grants aim to attract and retain new talent, enhancing the company's workforce.

How many shares were granted as RSUs to new employees at Stitch Fix?

A total of 1,511,416 shares of Class A common stock were granted.

When will the RSUs granted to Stitch Fix employees vest?

The RSUs will vest in different schedules, with a portion vesting on September 15, 2022, and the rest in quarterly installments thereafter.

What is the 2019 Inducement Plan related to Stitch Fix?

The 2019 Inducement Plan is a framework approved by the board to grant equity to new employees as an incentive.

What potential impact do RSU grants have on Stitch Fix stock?

While RSU grants may enhance workforce capabilities, they also present a risk of dilution for existing shareholders.