My guest today is Katrina Lake, the co-founder and CEO of Stitch Fix. Stitch Fix is a multi-billion-dollar public company which has brought an entirely new model to retail apparel by combining data science, technology, and personal stylists to create a unique shopping experience tailored to the individual consumer. I first met Katrina through past guest Bill Gurley and have been excited to host her since that first meeting. In our conversation, Katrina and I discuss all aspects of Stich Fix—its history, business model, innovations, and its future. Please enjoy this great and thought-provoking conversation with Katrina Lake. This week’s episode is sponsored by Bottomless. Bottomless is a smart coffee subscription which automatically re-orders coffee for you based on your consumption habits. Bottomless is offering one month and your second bag of coffee for free at bottomless.com/patrick. For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club and new email newsletter called “Inside the Episode” at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag Show Notes (2:19) – (First question) – Where E-Commerce stands and what the future might hold (4:37) – Why personalization makes Stitch Fix stand out from the others (9:34) – Why data science is foundational to their business (12:15) – What makes for a good augmented human and hiring stylists (14:34) – Stakeholder value and creating a great partnership with suppliers (18:10) – Their emphasis on stakeholder focus and social justice (19:28) – The capital efficiency of their business in the early days (24:46) – Her superpower of recruiting (29:46) – Her strengths in building Stitch Fix (31:56) – Transparency vs authenticity (32:59) – Big break for the business (37:15) – Exclusive brands to Stitch Fix (39:01) – The next act for Stitch Fix (41:43) – Lessons learned in pricing services (44:24) – Future trends in retail apparel (48:02) – Hardest thing to copy about Stitch Fix (49:59) – Lessons for putting data science at the center of your business (53:37) – Moments during her journey she’s felt most alive (55:23) – Kindest thing anyone has done for her Learn More For more episodes go to InvestorFieldGuide.com/podcast. Sign up for the book club and new email newsletter called “Inside the Episode” at InvestorFieldGuide.com/bookclub. Follow Patrick on Twitter at @patrick_oshag

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“What did the council decide on item 42?” — answered with the speaker and the moment.