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The customer retention question beleaguers Stitch Fit

Written by
R
Rick Moss
Investors are treating Stitch Fit, the online subscription and personal shopping service, with a high degree of skepticism. The company's share price rose more than 50 percent in the month following its disappointing IPO, but its first earnings report this week sent shares sharply downward again. Investors point to the problems Stitch Fit is encountering with keeping customers enrolled in the service, a common problem with subscription services, most notably with Blue Apron, which has suffered financially since its own IPO.

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