Online clothing company Stitch Fix plans to close its South San Francisco warehouse and cut 162 jobs, according to a state filing.
The last day of operations at the company’s South San Francisco warehouse on 45 South Spruce Ave. is expected to be April 30, and the last day of occupancy is May 28, according to the filing.
The San Francisco clothing company said warehouse workers will be laid off at the end of April, and site supervisors, managers, and others are expected to work until the end of May. A spokesperson said the distribution center, the smallest of around seven in the country, is closing because the company’s lease is expiring.
Stich Fix is searching for larger warehouses and plans to open a distribution center in Salt Lake City, Utah in October to cater to the West Coast market, estimating it would create around 400 jobs, according to a December earnings report.
The warehouse layoffs continue a trend of Stitch Fix shifting operations out of the state. Last June it said it would layoff 1,400 stylists in California, or 18% of its staff at the time, saying it would hire stylists outside the state. The company counts 8,000 employees, the same figure it cited last June, saying it had made stylist hires out-of-state.
Stitch Fix ships clothes and accessories to its customers each month through subscriptions. Customers can wear and return items or pay to keep outfits they like.
The company is expecting 20% to 25% growth during the current fiscal year ending in October. Quarterly revenue rose 10% from the prior year to $490 million for the three months ending last October and net income was $9.5 million.
Shwanika Narayan is a San Francisco Chronicle staff writer. Email: [email protected] Twitter: @shwanika Instagram: @shwanika
