Wall Street has long loved subscription businesses. From Costco to Netflix to Dollar Shave Club, the successful ones lock in customers who provide a steady, predictable stream of revenue.
The latest subscription love interest is Stitch Fix, the fashion service that had its initial public offering in November. Investors were skeptical, partly because it came after Blue Apron, a meal-kit subscription service that has largely tanked, and partly because it wasn’t clear whether a subscription model could work for clothing. After...