Why Stitch Fix Stock Is Soaring Higher During Thursday's Session

Stitch Fix Inc SFIX shares are trading higher by 8.28% to $3.46 Thursday. The company announced a CEO transition and a reduction of 20% of salaries jobs.

What Happened?

Elizabeth Spaulding will step down as Chief Executive Officer and as a member of the Board of Directors, effective Thursday.

Meanwhile, founder and former Chief Executive Officer Katrina Lake has been named Chief Executive Officer, also effective Thursday, to serve in an interim capacity for six months or until her successor is appointed, unless otherwise agreed by Ms. Lake and the Board of Directors.

"I look forward to stepping back in to lead the business and working closely with the Board of Directors to identify a successor going forward," Ms. Lake said. "My fellow Board members and I thank Elizabeth for her service to Stitch Fix, especially during the challenges of the last couple years. We wish her the best."

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According to data from Benzinga Pro, SFIX has a 52-week high of $20.17 and a 52-week low of $2.63.