The decision stems from recent public health orders in both states, the company said in a statement.
California Gov. Gavin Newsom issued a statewide shelter-in-place order Thursday night, following similar orders in Bay Area counties, including San Francisco, where the online styling service is headquartered. So did Pennsylvania Gov. Tom Wolf, who was granted extraordinary powers after declaring a “disaster emergency.” On Thursday, he shuttered all “non-life-sustaining” businesses in the Commonwealth.
Elected officials and authorities from health agencies have been widely encouraging “social distancing” to help stem COVID-19’s spread, and more states have segued from urging residents and businesses to minimize interactions to issuing more definitive orders.
Despite stating that shelter-in-place mandates wouldn’t be necessary in New York, Gov. Andrew Cuomo clamped down on nonessential businesses Friday morning and told residents to stay inside as much as possible.
New York is home to 6 percent of the U.S.’ population, yet has seen coronavirus cases spike to more than 7,000 — which amounts to roughly half of all the cases in the country. The effect on the region, as a major fashion hub in the U.S., may see more brands, retailers and distributors make moves like those undertaken by Stitch Fix.
The shutdowns in San Mateo County, Calif., and Bethlehem, Pa., are temporary, Stitch Fix stated. The former won’t return to operation until at least April 7. The company didn’t offer a timeline for the latter facility, as the governor’s office hasn’t yet offered a proposed end to the Pennsylvania order.
The fashion business runs six distribution centers in the U.S., so the move effectively cuts one-third of its distribution infrastructure. To minimize disruption, the company plans to lean on the other four facilities for inventory and service.
Stitch Fix shares were moving up on Thursday afternoon, thanks to investors keen on bargain-hunting retail stocks, than fell Friday after the news was announced. Trading at press time showed a 2.48 percent drop, at $14.93.