What Stitch Fix, Inc. told the SEC could break it.

The U.S. ban on cotton from China's Xinjiang region — a large share of world cotton supply — affects prices and availability of cotton for Stitch Fix merchandise, and goods may be held for CBP inspection.

“the U.S. government's ban on cotton imported from the Xinjiang region of China, the source of a large portion of the world's cotton supply, has and may further impact prices and the availability of cotton for our merchandise.”

Stitch Fix's distribution depends on just three U.S. fulfillment centers (Arizona, Indiana, Georgia) totaling ~2.5M sq ft; disruption at any one would impair the ability to receive merchandise and ship to clients.

“We operate three fulfillment centers in the United States (located in Arizona, Georgia, and Indiana).”

Since May 2025 the U.S. imposed significant incremental tariffs on Chinese imports, including the apparel Stitch Fix sources; the tariffs face legal challenges and ongoing change, creating cost and supply uncertainty.

“since May 2025, the U.S. government has imposed significant incremental tariffs on a broad range of goods imported from China, including the apparel we source. Certain of these tariffs are subject to legal and other challenges, the outcome of which could further change the tariff rate, including with respect to China.”

Stitch Fix sources nearly all of its merchandise from third-party vendors, the majority of whom manufacture in China, concentrating supply and pricing risk in a single geographic region.

“We currently source nearly all of our merchandise from third-party vendors, many of whom use manufacturers in the same geographic region, with the majority of manufacturing in China.”