Stitch Fix's CEO says investors don't get the concept

Addressing investor disappointment that sent shares of the subscription apparel retailer's stock down over 8 percent following its first earnings report, CEO Katrina Lake told CNBC that investors need a better understanding of how Stitch Fix's business model works. "The way we combine data science and humans is ... unique, to deliver our kind of personalization, and I see [it] as a significant competitive advantage" against a company such as Amazon, she said.