Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Oct. 27, 2018	Dec. 04, 2018
Document Information [Line Items]
Entity registrant name	Stitch Fix, Inc.
Trading symbol	SFIX
Entity central index key	0001576942
Current fiscal year end date	--08-03
Entity filer category	Non-accelerated Filer
Document type	10-Q
Document period end date	Oct. 27, 2018
Document fiscal year focus	2019
Document fiscal period focus	Q1
Amendment flag	false
Entity Emerging Growth Company	false
Entity Small Business	false
Class A Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding		41,985,380
Class B Common Stock
Document Information [Line Items]
Entity common stock, shares outstanding		57,552,608

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Oct. 27, 2018	Jul. 28, 2018
Current assets:
Cash & cash equivalents	$ 173,341	$ 297,516
Restricted cash	250	250
Short-term investments	84,985	0
Inventory, net	106,701	85,092
Prepaid expenses and other current assets	33,036	34,148
Total current assets	398,313	417,006
Long-term investments	83,870	0
Property and equipment, net	37,629	34,169
Deferred tax assets	15,234	14,107
Restricted cash, net of current portion	12,600	12,600
Other long-term assets	3,146	3,703
Total assets	550,792	481,585
Current liabilities:
Accounts payable	105,662	79,782
Accrued liabilities	67,098	43,037
Gift card liability	6,268	6,814
Deferred revenue	11,206	8,870
Other current liabilities	1,761	3,729
Total current liabilities	191,995	142,232
Deferred rent, net of current portion	15,635	15,288
Other long-term liabilities	9,659	8,993
Total liabilities	217,289	166,513
Commitments and contingencies (Note 6)
Stockholders’ equity:
Preferred stock, $0.00002 par value – 20,000,000 shares authorized as of October 27, 2018 and July 28, 2018; zero shares issued and outstanding as of October 27, 2018 and July 28, 2018	0	0
Additional paid-in capital	243,086	235,312
Accumulated other comprehensive loss	(56)	0
Retained earnings	90,471	79,758
Total stockholders’ equity	333,503	315,072
Total liabilities, convertible preferred stock and stockholders’ equity	550,792	481,585
Class A Common Stock
Stockholders’ equity:
Common stock, value	1	1
Class B Common Stock
Stockholders’ equity:
Common stock, value	$ 1	$ 1

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Oct. 27, 2018	Jul. 28, 2018
Preferred stock, par value (in dollars per share)	$ 0.00002	$ 0.00002
Preferred stock, shares authorized	20,000,000	20,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Class A Common Stock
Common stock, par value (in dollars per share)	$ 0.00002	$ 0.00002
Common stock, shares authorized	2,000,000,000	2,000,000,000
Common stock, shares issued	41,856,617	35,756,628
Common stock, shares outstanding	41,856,617	35,756,628
Class B Common Stock
Common stock, par value (in dollars per share)	$ 0.00002	$ 0.00002
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	57,577,608	63,043,233
Common stock, shares outstanding	57,577,608	63,043,233

Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Income Statement [Abstract]
Revenue, net	$ 366,236	$ 295,563
Cost of goods sold	201,068	166,548
Gross profit	165,168	129,015
Selling, general and administrative expenses	154,271	119,471
Operating income	10,897	9,544
Remeasurement of preferred stock warrant liability	0	(9,071)
Interest income	(1,399)	(17)
Other income, net	(120)	0
Income before income taxes	12,416	18,632
Provision for income taxes	1,738	5,144
Net income	10,678	13,488
Other comprehensive income (loss):
Change in unrealized loss on available-for-sale securities, net of tax	(82)	0
Foreign currency translation	26	0
Total other comprehensive loss, net of tax	(56)	0
Comprehensive income	10,622	13,488
Net income attributable to common stockholders:
Basic	10,664	3,915
Diluted	$ 10,665	$ 1,347
Earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.11	$ 0.15
Diluted (in dollars per share)	$ 0.10	$ 0.04
Weighted-average shares used to compute earnings per share attributable to common stockholders:
Basic (in shares)	98,965,274	26,329,495
Diluted (in shares)	104,539,452	33,262,082

Condensed Consolidated Statements of Convertible Preferred Stock and Stockholders' Equity - USD ($)
$ in Thousands

Total

Common Stock

Additional Paid-in Capital

Accumulated Other Comprehensive Loss

Retained Earnings

Convertible preferred stock, beginning balance at Jul. 29, 2017

$ 42,222

Convertible preferred stock, beginning balance (in shares) at Jul. 29, 2017

59,511,055

Convertible preferred stock, ending balance at Oct. 28, 2017

$ 42,222

Convertible preferred stock, ending balance (in shares) at Oct. 28, 2017

59,511,055

Stockholders' equity, beginning balance at Jul. 29, 2017

$ 61,861

$ 1

$ 27,002

$ 0

$ 34,858

Stockholders' equity, beginning balance (in shares) at Jul. 29, 2017

26,834,535

Increase (Decrease) in Stockholders' Equity

Issuance of common stock upon exercise of stock options

444

Issuance of common stock upon exercise of stock options (in shares)

211,236

Repurchase of common stock related to early exercised options (in shares)

(19,479)

Vesting of early exercised options

315

Stock-based compensation

2,159

Net income

13,488

Other comprehensive loss, net of tax

Stockholders' equity, ending balance at Oct. 28, 2017

78,267

$ 1

29,920

48,346

Stockholders' equity, ending balance (in shares) at Oct. 28, 2017

27,026,292

Increase (Decrease) in Stockholders' Equity

Cumulative effect of adopting accounting standards

^[1]

Convertible preferred stock, beginning balance at Jul. 28, 2018

$ 0

Convertible preferred stock, beginning balance (in shares) at Jul. 28, 2018

Convertible preferred stock, ending balance at Oct. 27, 2018

$ 0

Convertible preferred stock, ending balance (in shares) at Oct. 27, 2018

Stockholders' equity, beginning balance at Jul. 28, 2018

$ 315,072

$ 2

235,312

79,758

Stockholders' equity, beginning balance (in shares) at Jul. 28, 2018

98,799,861

Increase (Decrease) in Stockholders' Equity

Issuance of common stock upon exercise of stock options

2,000

Issuance of common stock upon exercise of stock options (in shares)

578,107

Issuance of restricted stock units, net of tax withholdings

(1,363)

Issuance of restricted stock units, net of tax withholdings (in shares)

56,257

Vesting of early exercised options

Stock-based compensation

7,047

Net income

10,678

Other comprehensive loss, net of tax

(56)

Stockholders' equity, ending balance at Oct. 27, 2018

$ 333,503

$ 2

$ 243,086

$ (56)

$ 90,471

Stockholders' equity, ending balance (in shares) at Oct. 27, 2018

99,434,225.000

[1]	See Note 2, Summary of Significant Accounting Policies, of the Notes to the Condensed Consolidated Financial Statements for more details on the cumulative effect of adopting accounting standards.

Condensed Consolidated Statements of Cash Flow - USD ($) $ in Thousands	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Cash Flows from Operating Activities
Net income	$ 10,678	$ 13,488
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(1,061)	(1,366)
Remeasurement of preferred stock warrant liability	0	(9,071)
Inventory reserves	1,563	4,224
Stock-based compensation expense	6,637	2,038
Depreciation and amortization	3,175	2,270
Loss on disposal of property and equipment	0	131
Change in operating assets and liabilities:
Inventory	(23,172)	(24,208)
Prepaid expenses and other assets	1,252	4,084
Accounts payable	26,008	13,967
Accrued liabilities	24,360	16,942
Deferred revenue	2,532	1,663
Gift card liability	(141)	(119)
Other liabilities	(865)	748
Net cash provided by operating activities	50,966	24,791
Cash Flows from Investing Activities
Purchases of property and equipment	(6,985)	(4,180)
Purchases of securities available-for-sale	(169,095)	0
Sales of securities available-for-sale	302	0
Net cash used in investing activities	(175,778)	(4,180)
Cash Flows from Financing Activities
Proceeds from the exercise of stock options	637	444
Repurchase of Class B common stock related to early exercised options	0	(39)
Payment of deferred offering costs	0	(528)
Net cash provided by (used in) financing activities	637	(123)
Net increase (decrease) in cash, cash equivalents and restricted cash	(124,175)	20,488
Cash, cash equivalents and restricted cash at beginning of period	310,366	119,958
Cash, cash equivalents and restricted cash at end of period	186,191	140,446
Components of cash, cash equivalents and restricted cash
Cash & cash equivalents	173,341	131,096
Restricted cash – current portion	250	250
Restricted cash – long-term portion	12,600	9,100
Cash, cash equivalents and restricted cash at end of period	186,191	140,446
Supplemental Disclosure
Cash paid for income taxes	42	0
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Purchases of property and equipment included in accounts payable and accrued liabilities	224	1,022
Capitalized stock-based compensation	410	121
Vesting of early exercised options	90	315
Deferred offering costs included in accrued liabilities	$ 0	$ 920

Description of Business	3 Months Ended
Description of Business	Oct. 27, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Description of Business	Description of Business Stitch Fix, Inc. (“we,” “our,” “us” or “the Company”) delivers one-to-one personalization to our clients through the combination of data science and human judgment. Our stylists hand select items from a broad range of merchandise. Stylists pair their own judgment with our analysis of client and merchandise data to provide a personalized shipment of apparel, shoes and accessories suited to each client’s needs. We call each of these unique shipments a Fix. After receiving a Fix, our clients purchase the items they want to keep and return the other items. We are incorporated in Delaware and have operations in the United States and the United Kingdom. Initial Public Offering On November 16, 2017, we completed an initial public offering (“IPO”). In connection with the IPO, we authorized two new classes of common stock: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock and has no expiration date. The Class B common stock automatically converts to Class A common stock upon transfers or any sale. In our IPO, we issued and sold 8,000,000 shares of our Class A common stock at a public offering price of $15.00 per share. We received $110.4 million in net proceeds after deducting $6.2 million of underwriting discounts and $3.4 million in offering costs. Upon the closing of the IPO, all of the then outstanding shares of common stock were reclassified into Class B common stock, all of the outstanding shares of convertible preferred stock automatically converted into 59,511,055 shares of Class B common stock and all of the outstanding preferred stock warrants were automatically exercised into 1,066,225 shares of Class B common stock. Subsequent to the closing of the IPO, there were no shares of preferred stock or preferred stock warrants outstanding. In December 2017, we issued an additional 1,175,557 shares of Class A common stock at a price of $15.00 per share following the underwriters’ exercise of their option to purchase additional shares and received $16.7 million in net proceeds after deducting underwriting discounts and expenses.

Summary of Significant Accounting Policies	3 Months Ended
Summary of Significant Accounting Policies	Oct. 27, 2018
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ended August 3, 2019 (“2019”) and July 28, 2018 (“2018”) consist of 53 weeks and 52 weeks, respectively. The unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending August 3, 2019, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended July 28, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC on October 3, 2018 (“2018 Annual Report”). Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in our condensed consolidated financial statements and accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, revenue recognition and, prior to our IPO, common stock valuation and remeasurement of preferred stock warrant liability. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements. Restricted Cash Restricted cash represents cash balances held in segregated accounts collateralizing letters of credit for our leased properties as of October 27, 2018, and July 28, 2018. Investment Securities The Company’s short-term and long-term investments have been classified and accounted for as available-for-sale. We determine the appropriate classification of our investments at the time of purchase and reevaluate the classifications at each balance sheet date. Available-for-sale securities with maturities of 12 months or less are classified as short-term and available-for-sale securities with maturities greater than 12 months are classified as long-term. The Company’s available-for-sale securities are carried at fair value, with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive loss (“AOCI”) in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary, which are reported in earnings in the current period, if applicable. The cost of securities sold is based upon the specific identification method. Foreign Currency The functional currency of our international subsidiary is the local currency. For that subsidiary, we translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’ equity. Net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are recorded in Other income, net in the condensed consolidated statements of operations and comprehensive income. Revenue Recognition We generate revenue primarily from the sale of merchandise in a Fix. Clients create an online account on our website or mobile app, complete a style profile and order a Fix to be delivered on a specified date. Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable $20 upfront styling fee before the Fix is shipped. As an alternative to the styling fee, we offer select clients the option to purchase a Style Pass. Style Pass clients pay a $49 nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a 25% discount to clients who purchase all of the items in the Fix. We recognize revenue through the following steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Both our styling fee and Style Pass arrangements consist of one performance obligation, which is the option to purchase merchandise. The upfront styling fee is not a performance obligation as the styling activity is not distinct within the context of the contract. Similarly, the right to receive multiple options under Style Pass does not provide the customer with material stand-alone value and therefore does not give rise to a separate performance obligation. Both the upfront styling fee and Style Pass annual fee are included in deferred revenue until the performance obligation is satisfied when the client exercises his or her option to purchase merchandise (i.e., upon checkout of a Fix) or when the option(s) to purchase merchandise expire(s). Revenue is recognized when control of the promised goods is transferred to the client. Control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. We deduct discounts, sales tax and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. All shipping and handling costs are accounted for as fulfillment costs in Cost of goods sold and Selling, general, and administrative expense (“SG&A”), respectively, and are therefore not evaluated as a separate performance obligation. Discounts are recorded as a reduction to revenue when the order is accepted. We record a refund reserve based on our historical refund patterns. Our refund reserve, which was included in accrued liabilities in the consolidated balance sheets, was $2.5 million and $2.3 million as of October 27, 2018, and July 28, 2018, respectively. The Company has four types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in Deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer (ii) cash collections of Style Pass annual fees, which are included in Deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in Gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates and (iv) referral credits, which are included in Other current liabilities and are recognized as revenue when used. We sell gift cards to clients and establish a liability based upon the face value of such gift cards. We reduce the liability and recognize revenue upon usage of the gift card. If a gift card is not used, we will recognize estimated gift card breakage revenue proportionately to customer usage of gift cards over the expected gift card usage period, subject to requirements to remit balances to governmental agencies. All commissions paid to third parties upon issuance of gift cards are recognized in SG&A as incurred, as on average, gift cards are used within a one-year period. Similarly, referral credits that are considered incremental costs of obtaining a contract with a customer are recognized in SG&A when issued, as on average, referral credits are used within a one-year period. Contractual liabilities included in Deferred revenue, Gift card liability and Other current liabilities were $11.2 million, $6.3 million and $0.8 million, respectively, at October 27, 2018, and $8.9 million, $6.8 million and $2.7 million, respectively, at July 28, 2018. During the three months ended October 27, 2018, the Company recognized $8.2 million, $0.1 million and $0.6 million of net revenue included in Deferred revenue, Gift card liability and Other current liabilities, respectively, at July 28, 2018. All amounts presented as of July 28, 2018, are accounted for under ASC 605. All amounts presented as of October 27, 2018, include the transition impact of adopting ASC 606. See “Recently Adopted Accounting Pronouncements” below. Deferred revenue related to upfront styling fees totaled $10.1 million as of October 27, 2018, and $7.6 million as of July 28, 2018. Deferred revenue related to Style Pass annual fees totaled $1.1 million as of October 27, 2018, and $1.1 million as of July 28, 2018. Deferred revenue related to exchanges totaled $0.2 million as of July 28, 2018. The Company expects Deferred revenue for upfront styling fees and Style Pass annual fees to be recognized within one year. On average, Gift card liability and Other current liabilities are also recognized within one year. Concentration of Credit Risks We are subject to concentrations of credit risk principally from cash and cash equivalents and investment securities. The majority of our cash is held by three financial institutions within the United States. Our cash balances held by these institutions may exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. Our cash equivalents consist of money market funds and commercial paper. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments. No client accounted for greater than 10% of total revenue, net for the three months ended October 27, 2018, and October 28, 2017. Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. We expect to adopt this standard in our first quarter of fiscal 2020. We are currently evaluating the impact that this standard will have on our consolidated financial statements but we expect that it will result in a substantial increase in our long-term assets and liabilities. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under this ASU, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. We expect to adopt this standard in our first quarter of fiscal 2020. We are currently evaluating the impact that this standard will have on our consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amended the existing FASB Accounting Standards Codification. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services and also provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (“modified retrospective method”). We adopted the standard in the first quarter of fiscal 2019 under the modified retrospective approach. Under the new standard, we recognize estimated gift card breakage revenue proportionately to customer gift card usage over the expected gift card usage period rather than waiting until the likelihood of redemption becomes remote. Further, we recognize revenue related to exchanges upon shipment by us, rather than upon receipt by the customer. In the first quarter of fiscal 2019, the Company recorded a cumulative catch-up adjustment resulting in an increase to opening retained earnings, net of tax, of $0.4 million, comprised of the impact of $0.3 million from the change in revenue recognition related to gift cards and $0.1 million from the recognition of exchanges upon shipment. The impact to net revenue for the three months ended October 27, 2018, was an increase of $0.5 million as a result of applying the standard. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which amends existing guidance on the recognition of current and deferred income tax impacts for intra-entity asset transfers other than inventory. We adopted the standard in the first quarter of fiscal 2019 under the modified retrospective approach. As a result, a cumulative adjustment of $0.4 million, net of tax, was recorded to reduce opening retained earnings in connection with this adoption.

Fair Value Measurements

3 Months Ended

Oct. 27, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

We disclose and recognize the fair value of our assets and liabilities using a hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the measurement date. The guidance establishes three levels of the fair value hierarchy as follows:

Level 1: Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date;

Level 2: Inputs are observable, unadjusted quoted prices in active markets for similar assets or liabilities, unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities; and

Level 3: Unobservable inputs that are significant to the measurement of the fair value of the assets or liabilities that are supported by little or no market data.

Our financial instruments consist of short-term and long-term investments, accounts payable, accrued liabilities and, prior to our IPO, the preferred stock warrant liability. At October 27, 2018, and July 28, 2018, the carrying values of cash and cash equivalents, accounts payable and accrued liabilities approximated fair value due to their short-term maturities. In November 2017, in connection with our IPO, all outstanding preferred stock warrants were automatically exercised into Class B common stock. As a result, we remeasured and reclassified the preferred stock warrant liability to additional paid-in capital upon the closing of the IPO.

The following table sets forth the amortized cost, gross unrealized gains, gross unrealized losses and fair values of our short-term and long-term investments accounted for as available-for-sale as of October 27, 2018:



	October 27, 2018
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Financial Assets:
Investments:
U.S. Treasury securities	$	31,808	$	—	$	(12	)	$	31,796
Commercial paper	41,431		—		—			41,431
Asset-backed securities	34,723		5		(45		)	34,683
Corporate bonds	61,042		—		(97		)	60,945
Total	$	169,004	$	5	$	(154	)	$	168,855

The following table sets forth the fair value of available-for-sale securities by contractual maturity as of October 27, 2018:



	October 27, 2018
(in thousands)	One Year or Less		Over One Year Through Five Years		Over Five Years		Total
Financial Assets:
Investments:
U.S. Treasury securities	$	31,796	$	—	$	—	$	31,796
Commercial paper	41,431		—		—		41,431
Asset-backed securities	5,933		28,750		—		34,683
Corporate bonds	5,825		55,120		—		60,945
Total	$	84,985	$	83,870	$	—	$	168,855

The following table sets forth our short-term and long-term investments accounted for as available-for-sale that were measured at fair value on a recurring basis based on the fair value hierarchy as of October 27, 2018:



	October 27, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash equivalents:
Money market funds	$	862	$	—	$	—	$	862
Commercial paper	—		5,993		—		5,993
Investments:
U.S. Treasury securities	31,796		—		—		31,796
Commercial paper	—		41,431		—		41,431
Asset-backed securities	—		34,683		—		34,683
Corporate bonds	—		60,945		—		60,945
Total	$	32,658	$	143,052	$	—	$	175,710

As of July 28, 2018, the Company did not have any financial instruments measured at fair value.

There were no transfers of financial assets or liabilities into or out of Level 1, Level 2 or Level 3 for the three months ended October 27, 2018, and October 28, 2017.

The following table sets forth a summary of the changes in the fair value of the preferred stock warrant liability for the three months ended October 28, 2017 (in thousands):



(in thousands)	For the Three Months Ended October 28, 2017
Balance at July 29, 2017	$	26,679
Change in fair value	(9,071		)
Ending Balance at October 28, 2017	$	17,608

See Note 5, Preferred Stock Warrant Liability, for more details on our preferred stock warrants.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Preferred Stock Warrant Liability	3 Months Ended
Preferred Stock Warrant Liability	Oct. 27, 2018
Equity [Abstract]
Preferred Stock Warrant Liability	Preferred Stock Warrant Liability In 2012 and 2013, in connection with financing arrangements, we issued warrants to purchase shares of our convertible preferred stock. For one of the financing arrangements, we issued warrants to purchase 375,230 shares of Series Seed convertible preferred stock at an exercise price of $0.1066 per share and 66,265 shares of Series A convertible preferred stock at an exercise price of $0.22636 per share. For the second financing arrangement, we issued warrants for the purchase of, at the warrant holder’s option, either (a) 624,730 shares of Series A-1 convertible preferred stock at an exercise price of $0.2401 per share or (b) 308,315 shares of Series B convertible preferred stock at an exercise price of $0.486516 per share. Prior to their automatic exercise in connection with our IPO, as described below, the warrants were exercisable for and expired 10 years from the date of issuance. In November 2017, in connection with our IPO, the preferred stock warrants were automatically exercised into Class B common stock and the preferred stock warrant liability was reclassified to additional paid-in capital.

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Oct. 27, 2018
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Commitments On October 12, 2018, we executed an agreement with a third-party logistics contractor to lease and operate a fulfillment center in Leicester, England (the “Fulfillment Center Logistics Agreement”). The agreement commits the Company to a five-year contract for logistics services at the Leicester fulfillment center that can be terminated after two years, with six months’ advance notice. Effective with the Fulfillment Center Logistics Agreement, the leasing component of the arrangement will be accounted for as an operating lease with future minimum lease payments over the five-year term of $11.1 million. Contingencies We record a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. We also disclose material contingencies when we believe a loss is not probable but reasonably possible. Accounting for contingencies requires us to use judgment related to both the likelihood of a loss and the estimate of the amount or range of loss. Although we cannot predict with assurance the outcome of any litigation or tax matters, we do not believe there are currently any such actions that, if resolved unfavorably, would have a material impact on our operating results, financial position and cash flows. On October 11, 2018, October 26, 2018, and November 16, 2018, three putative class action lawsuits alleging violations of the federal securities laws were filed in the U.S. District Court for the Northern District of California, naming as defendants us and certain of our officers. The three lawsuits make the same allegations of violations of the Securities Exchange Act of 1934 by us and our officers for allegedly making materially false and misleading statements regarding our active client growth and strategy with respect to television advertising between June 2018 and October 2018. The plaintiffs seek unspecified monetary damages and other relief. We expect the three lawsuits to be consolidated into one. There have been no other material changes to our commitments and contingencies as disclosed in our 2018 Annual Report. Indemnifications In the ordinary course of business, we may provide indemnifications of varying scope and terms to vendors, directors, officers and other parties with respect to certain matters. We have not incurred any material costs as a result of such indemnifications and have not accrued any liabilities related to such obligations in our condensed consolidated financial statements.

Accumulated Other Comprehensive Loss

3 Months Ended

Oct. 27, 2018

Equity [Abstract]

Accumulated Other Comprehensive Loss

The table below presents the changes in accumulated other comprehensive loss by component and the reclassifications out of AOCI:



	Changes in Accumulated Other Comprehensive Income
(in thousands)	Available-for-sale Securities			Foreign Currency Translation		Total
Balance at July 28, 2018	$	—		$	—	$	—
Other comprehensive income (loss) before reclassifications⁽¹⁾	(82		)	26		(56		)
Net change in AOCI	(82		)	26		(56		)
Balance at October 27, 2018	$	(82	)	$	26	$	(56	)

⁽¹⁾The associated income tax effects for gains / losses on available-for-sale securities were $67.

Stock Based Compensation

3 Months Ended

Oct. 27, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

2011 Equity Incentive Plan

In 2011, we adopted the 2011 Equity Incentive Plan (the “2011 Plan”). The 2011 Plan provided for the grant of stock-based awards to employees, including directors and nonemployees under terms and provisions established by the board of directors.

The 2011 Plan allowed for the grant of incentive stock options or nonqualified stock options as well as restricted stock units, restricted stock and stock appreciation rights. As of October 27, 2018, we had only granted incentive and nonqualified stock options under the 2011 Plan. Employee stock option grants generally vest 25% on the first anniversary of the grant date with the remaining options vesting ratably over the next three years. Options generally expire after 10 years. Effective upon our IPO, the 2011 Plan was replaced by the 2017 Incentive Plan.

2017 Incentive Plan

In November 2017, our board of directors and stockholders adopted our 2017 Incentive Plan (the “2017 Plan”). The remaining shares available for issuance under the 2011 Plan became reserved for issuance under the 2017 Plan. Our 2017 Plan provides for the grant of Class A incentive stock options to employees, including employees of any parent or subsidiary, and for the grant of nonqualified stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance stock awards, performance cash awards and other forms of stock awards to employees, directors and consultants, including employees and consultants of our subsidiaries. The number of shares authorized for issuance under the 2017 Plan was 28,423,374 as of October 27, 2018, of which 3,149,479 were available for grant.

Stock option activity under the 2011 Plan and 2017 Plan is as follows:



	Options Outstanding
	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value (in thousands)
Balance – July 28, 2018	9,052,160		$	11.74	8.23	$	160,856
Authorized	—
Granted	105,061		$	38.69
Exercised	(578,107	)	$	3.39
Cancelled	(175,356	)	$	11.20
Balance – October 27, 2018	8,403,758		$	12.29	8.11	$	95,008

The aggregate intrinsic value is the difference between the current fair value of the underlying common stock and the exercise price for in-the-money stock options.

The following table summarizes the restricted stock unit (“RSU”) award activity under the 2017 Plan:



	Unvested RSUs
	Class A Common Stock		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value (in thousands)
Unvested at July 28, 2018	2,432,326		$	21.58	3.50	$	71,778
Granted	759,776		$	40.73
Vested	(56,257	)	$	19.38
Forfeited	(95,337	)	$	23.45
Unvested at October 27, 2018	3,040,508		$	26.38	3.51	$	71,969

Stock-Based Compensation Expense

Stock-based compensation expense for employees was $6.6 million for the three months ended October 27, 2018, and $2.0 million for the three months ended October 28, 2017. Stock-based compensation expense is included in selling, general and administrative expenses in our condensed consolidated statements of operations.

The weighted-average grant date fair value of options granted during the three months ended October 27, 2018, was $17.22 per share. The weighted-average grant date fair value of options granted during the three months ended October 28, 2017, was $7.55 per share. As of October 27, 2018, the total unrecognized compensation expense related to unvested options and RSUs, net of estimated forfeitures, was $121.3 million, which we expect to recognize over an estimated weighted average period of 3.1 years.

We record stock-based compensation of stock options granted to employees by estimating the fair value of stock-based awards using the Black-Scholes option pricing model and amortizing the fair value of the stock-based awards granted over the applicable vesting period of the awards on a straight-line basis. The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions:



	For the Three Months Ended
	October 27, 2018		October 28, 2017
Expected term (in years)	5.1 - 6.2		5.6 - 6.5
Volatility	41.7 - 42.0%		42.1 - 43.5%
Risk free interest rate	2.8 - 3.0%		1.9 - 2.0%
Dividend yield	—	%	—	%

In July 2017, we granted options to certain members of our executive management team to purchase an aggregate of 1,097,463 shares of Class B common stock which had both a service-based condition and a liquidity event-related performance condition.

Such options vest ratably over the 24-month period following the fourth anniversary of the grant date, subject to an IPO occurring within 12 months of the grant date and the option holder’s continuous service through each vesting date. The aggregate grant-date fair value of such option awards was $14.0 million.

Since an IPO is not deemed probable until such event occurs, no compensation cost related to the performance condition was recognized prior to the consummation of our IPO in November 2017. Subsequently, we recorded stock-based compensation expense of $0.5 million related to periods prior to the IPO.

Income Taxes

3 Months Ended

Oct. 27, 2018

Income Tax Disclosure [Abstract]

Income Taxes

The following table summarizes our effective tax rate from income for the periods presented:



	For the Three Months Ended
(in thousands)	October 27, 2018			October 28, 2017
Income before income taxes	$	12,416		$	18,632
Provision for income taxes	1,738			5,144
Effective tax rate	14.0		%	27.6		%

We are primarily subject to income taxes in the United States. Our effective tax rate for the three months ended October 27, 2018, differs from the federal statutory income tax rate primarily due to lower tax rates in foreign jurisdictions where international expansion expenses are incurred, and certain nondeductible expenses and state taxes, partially offset by the benefits on stock-based compensation deductions and allowable credits.

Our effective tax rate for the three months ended October 28, 2017, was based on the historic statutory tax rate of 35%. Our effective tax rate for the three months ended October 28, 2017, differed from the federal statutory income tax rate primarily due to nondeductible loss on remeasurement of the preferred stock warrant liability, state taxes and certain other nondeductible expenses, partially offset by the benefits on certain stock-based compensation deductions.

On December 22, 2017, the U.S. enacted the Tax Cuts and Jobs Act (the “Tax Act”), which significantly changed U.S. tax law. The Tax Act contains several key tax provisions including the reduction of the corporate income tax rate from 35% to 21%, as well as a variety of other changes including the acceleration of expensing of certain business assets and reductions in the amount of executive pay that could qualify as a tax deduction. The federal statutory tax rate reduction is effective January 1, 2018.

During the period ended July 28, 2018, the Company remeasured the deferred tax balances based on the tax rates at which they are expected to reverse in the future which resulted in an increase in income tax expense of $6.7 million. The Company will continue to refine adjustments made under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”), during the measurement period as a result of future changes in interpretation, information available, assumptions made by the Company and/or issuance of additional guidance. There were no changes to the remeasurement of deferred tax balances during the three months ended October 27, 2018.

We continue to monitor the progress of ongoing discussions with tax authorities and the impact, if any, of the expected expiration of the statute of limitations in various taxing jurisdictions.

Earnings Per Share Attributable to Common Stockholders

3 Months Ended

Oct. 27, 2018

Earnings Per Share [Abstract]

Earnings Per Share Attributable to Common Stockholders

Basic and diluted net income per share attributable to common stockholders is presented in conformity with the two-class method required for participating securities. We consider convertible preferred stock and early exercised share options to be participating securities. In connection with our IPO, we established two classes of authorized common stock: Class A common stock and Class B common stock. As a result, all then-outstanding shares of common stock were converted into shares of Class B common stock upon effectiveness of the IPO. The rights of the holders of Class A and Class B common stock are identical, except with respect to voting, conversion and transfer rights. Each share of Class A common stock is entitled to one vote per share and each share of Class B common stock is entitled to ten votes per share. Each share of Class B common stock is convertible at any time at the option of the stockholder into one share of Class A common stock.

Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Basic net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding during the period. All participating securities are excluded from basic weighted-average common shares outstanding.

For the calculation of diluted earnings per share (“EPS”), net income attributable to common stockholders for basic EPS is adjusted by the effect of dilutive securities. Diluted net income per share attributable to common stockholders is computed by dividing the net income attributable to common stockholders by the weighted-average number of common shares outstanding, including all potentially dilutive common shares. The undistributed earnings are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year have been distributed. As the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while diluted net income per share of Class B common stock does not assume the conversion of Class A common stock as Class A common stock is not convertible into Class B common stock.

A reconciliation of the numerator and denominator used in the calculation of the basic and diluted EPS attributable to common stockholders is as follows:



	For the Three Months Ended
	October 27, 2018						October 28, 2017
(in thousands, except share and per share amounts)	Class A			Class B			Class B
Numerator:
Net income	$	4,084		$	6,594		$	13,488
Less: noncumulative dividends to preferred stockholders	—			—			(635		)
Less: undistributed earnings to participating securities	(5		)	(9		)	(8,938		)
Net income attributable to common stockholders - basic	4,079			6,585			3,915
Less: change in fair value of preferred stock warrant liability (net of tax)	—			—			(9,071		)
Add: adjustments to undistributed earnings to participating securities	1			—			6,503
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	6,585			—			—
Reallocation of undistributed earnings to Class B shares	—			85			—
Net income attributable to common stockholders - diluted	$	10,665		$	6,670		$	1,347
Denominator:
Weighted-average shares of common stock - basic	37,850,643			61,114,631			26,329,495
Conversion of Class B to Class A common shares outstanding	61,114,631			—			—
Effect of dilutive stock options and restricted stock units	5,574,178			4,260,911			5,876,621
Effect of potentially dilutive preferred stock warrants	—			—			1,055,966
Weighted-average shares of common stock - diluted	104,539,452			65,375,542			33,262,082
Earnings per share attributable to common stockholders:
Basic	$	0.11		$	0.11		$	0.15
Diluted	$	0.10		$	0.10		$	0.04

The following common stock equivalents were excluded from the computation of diluted earnings per share for the periods presented because including them would have been antidilutive:



	For the Three Months Ended
	October 27, 2018	October 28, 2017
Convertible preferred stock	—	59,511,055
Preferred stock warrants	—	—
Restricted stock units	750,607	—
Stock options to purchase Class A common stock	351,184	—
Stock options to purchase Class B common stock	2,239	954,706
Total	1,104,030	60,465,761

Summary of Significant Accounting Policies (Policies)	3 Months Ended
Summary of Significant Accounting Policies (Policies)	Oct. 27, 2018
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation Our fiscal year is a 52-week or 53-week period ending on the Saturday closest to July 31. The fiscal years ended August 3, 2019 (“2019”) and July 28, 2018 (“2018”) consist of 53 weeks and 52 weeks, respectively. The unaudited condensed consolidated financial statements include the accounts of Stitch Fix, Inc. and our wholly owned subsidiaries, and have been prepared in accordance with generally accepted accounting principles in the United States (“GAAP”) and following the requirements of the U.S. Securities and Exchange Commission (the “SEC”) for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted. These financial statements have been prepared on the same basis as our annual financial statements and, in the opinion of management, reflect all adjustments, consisting only of normal recurring adjustments, which are necessary for the fair statement of our financial information. These interim results are not necessarily indicative of the results to be expected for the fiscal year ending August 3, 2019, or for any other interim period or for any other future year. All intercompany balances and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the related notes thereto for the fiscal year ended July 28, 2018, included in the Company’s Annual Report on Form 10-K filed with the SEC on October 3, 2018 (“2018 Annual Report”).
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts in our condensed consolidated financial statements and accompanying footnotes. Significant estimates and assumptions are used for inventory, stock-based compensation expense, income taxes, revenue recognition and, prior to our IPO, common stock valuation and remeasurement of preferred stock warrant liability. Actual results could differ from those estimates and such differences may be material to the condensed consolidated financial statements.
Restricted Cash	Restricted Cash Restricted cash represents cash balances held in segregated accounts collateralizing letters of credit for our leased properties as of October 27, 2018, and July 28, 2018.
Investment Securities	Investment Securities The Company’s short-term and long-term investments have been classified and accounted for as available-for-sale. We determine the appropriate classification of our investments at the time of purchase and reevaluate the classifications at each balance sheet date. Available-for-sale securities with maturities of 12 months or less are classified as short-term and available-for-sale securities with maturities greater than 12 months are classified as long-term. The Company’s available-for-sale securities are carried at fair value, with unrealized gains and losses, net of taxes, reported within accumulated other comprehensive loss (“AOCI”) in stockholders’ equity, with the exception of unrealized losses believed to be other-than-temporary, which are reported in earnings in the current period, if applicable. The cost of securities sold is based upon the specific identification method.
Foreign Currency	Foreign Currency The functional currency of our international subsidiary is the local currency. For that subsidiary, we translate assets and liabilities to U.S. dollars using period-end exchange rates, and average monthly exchange rates for revenues, costs, and expenses. We record translation gains and losses in AOCI as a component of stockholders’ equity. Net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to functional currency are recorded in Other income, net in the condensed consolidated statements of operations and comprehensive income.
Revenue Recognition	Revenue Recognition We generate revenue primarily from the sale of merchandise in a Fix. Clients create an online account on our website or mobile app, complete a style profile and order a Fix to be delivered on a specified date. Each Fix represents an offer made by us to the client to purchase merchandise. The client is charged a nonrefundable $20 upfront styling fee before the Fix is shipped. As an alternative to the styling fee, we offer select clients the option to purchase a Style Pass. Style Pass clients pay a $49 nonrefundable annual fee for unlimited Fixes that is credited towards merchandise purchases. If the offer to purchase merchandise is accepted, we charge the client the order amount for the accepted merchandise, net of the upfront styling fee or Style Pass annual fee. For each Fix, acceptance occurs when the client checks out the merchandise on our website or mobile app. We offer a 25% discount to clients who purchase all of the items in the Fix. We recognize revenue through the following steps: (1) identification of the contract, or contracts, with the customer; (2) identification of the performance obligations in the contract; (3) determination of the transaction price; (4) allocation of the transaction price to the performance obligations in the contract; and (5) recognition of revenue when, or as, we satisfy a performance obligation. Both our styling fee and Style Pass arrangements consist of one performance obligation, which is the option to purchase merchandise. The upfront styling fee is not a performance obligation as the styling activity is not distinct within the context of the contract. Similarly, the right to receive multiple options under Style Pass does not provide the customer with material stand-alone value and therefore does not give rise to a separate performance obligation. Both the upfront styling fee and Style Pass annual fee are included in deferred revenue until the performance obligation is satisfied when the client exercises his or her option to purchase merchandise (i.e., upon checkout of a Fix) or when the option(s) to purchase merchandise expire(s). Revenue is recognized when control of the promised goods is transferred to the client. Control is transferred when the client accepts or rejects the offer to purchase merchandise. Upon acceptance by purchasing one or more items within the Fix at checkout, the total amount of the order, including the upfront styling fee, is recognized as revenue. If none of the items within the Fix are accepted at checkout, the upfront styling fee is recognized as revenue at that time. The Style Pass annual fee is recognized at the earlier of (i) the time at which a client accepts and applies the Style Pass fee to an offer to purchase merchandise or (ii) upon expiry of the annual period. Under Style Pass arrangements, if a client does not accept any items within the Fix, the annual fee will continue to be deferred until it is applied to a future purchase or upon expiry of the annual period. If a client would like to exchange an item, we recognize revenue at the time the exchanged item is shipped, which coincides with the transfer of control to the customer. We deduct discounts, sales tax and estimated refunds to arrive at net revenue. Sales tax collected from clients is not considered revenue and is included in accrued liabilities until remitted to the taxing authorities. All shipping and handling costs are accounted for as fulfillment costs in Cost of goods sold and Selling, general, and administrative expense (“SG&A”), respectively, and are therefore not evaluated as a separate performance obligation. Discounts are recorded as a reduction to revenue when the order is accepted. We record a refund reserve based on our historical refund patterns. Our refund reserve, which was included in accrued liabilities in the consolidated balance sheets, was $2.5 million and $2.3 million as of October 27, 2018, and July 28, 2018, respectively. The Company has four types of contractual liabilities: (i) cash collections of upfront styling fees, which are included in Deferred revenue and are recognized as revenue upon the earlier of application to a merchandise purchase or expiry of the offer (ii) cash collections of Style Pass annual fees, which are included in Deferred revenue and are recognized upon the earlier of application to a merchandise purchase or expiry of the Style Pass annual period, (iii) unredeemed gift cards, which are included in Gift card liability and recognized as revenue upon usage or inclusion in gift card breakage estimates and (iv) referral credits, which are included in Other current liabilities and are recognized as revenue when used. We sell gift cards to clients and establish a liability based upon the face value of such gift cards. We reduce the liability and recognize revenue upon usage of the gift card. If a gift card is not used, we will recognize estimated gift card breakage revenue proportionately to customer usage of gift cards over the expected gift card usage period, subject to requirements to remit balances to governmental agencies. All commissions paid to third parties upon issuance of gift cards are recognized in SG&A as incurred, as on average, gift cards are used within a one-year period. Similarly, referral credits that are considered incremental costs of obtaining a contract with a customer are recognized in SG&A when issued, as on average, referral credits are used within a one-year period. Contractual liabilities included in Deferred revenue, Gift card liability and Other current liabilities were $11.2 million, $6.3 million and $0.8 million, respectively, at October 27, 2018, and $8.9 million, $6.8 million and $2.7 million, respectively, at July 28, 2018. During the three months ended October 27, 2018, the Company recognized $8.2 million, $0.1 million and $0.6 million of net revenue included in Deferred revenue, Gift card liability and Other current liabilities, respectively, at July 28, 2018. All amounts presented as of July 28, 2018, are accounted for under ASC 605. All amounts presented as of October 27, 2018, include the transition impact of adopting ASC 606. See “Recently Adopted Accounting Pronouncements” below. Deferred revenue related to upfront styling fees totaled $10.1 million as of October 27, 2018, and $7.6 million as of July 28, 2018. Deferred revenue related to Style Pass annual fees totaled $1.1 million as of October 27, 2018, and $1.1 million as of July 28, 2018. Deferred revenue related to exchanges totaled $0.2 million as of July 28, 2018. The Company expects Deferred revenue for upfront styling fees and Style Pass annual fees to be recognized within one year. On average, Gift card liability and Other current liabilities are also recognized within one year.
Concentration of Credit Risks	Concentration of Credit Risks We are subject to concentrations of credit risk principally from cash and cash equivalents and investment securities. The majority of our cash is held by three financial institutions within the United States. Our cash balances held by these institutions may exceed federally insured limits. The associated risk of concentration for cash is mitigated by banking with credit-worthy institutions. Our cash equivalents consist of money market funds and commercial paper. The associated risk of concentration for cash equivalents and investments is mitigated by maintaining a diversified portfolio of highly rated instruments.
Recently Issued/Adopted Accounting Pronouncements	Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, Leases (Topic 842) (“ASU 2016-02”), which requires lessees to record most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. We expect to adopt this standard in our first quarter of fiscal 2020. We are currently evaluating the impact that this standard will have on our consolidated financial statements but we expect that it will result in a substantial increase in our long-term assets and liabilities. In June 2018, the FASB issued ASU No. 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Under this ASU, the accounting for awards issued to nonemployees will be similar to the accounting for employee awards. This includes allowing for the measurement of awards at the grant date and recognition of awards with performance conditions when those conditions are probable, both of which are earlier than under current guidance for nonemployee awards. We expect to adopt this standard in our first quarter of fiscal 2020. We are currently evaluating the impact that this standard will have on our consolidated financial statements. Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) (“ASU 2014-09”), which amended the existing FASB Accounting Standards Codification. ASU 2014-09 establishes a principle for recognizing revenue upon the transfer of promised goods or services to customers, in an amount that reflects the expected consideration received in exchange for those goods or services and also provides guidance on the recognition of costs related to obtaining and fulfilling customer contracts. The new guidance may be applied retrospectively to each prior period presented or retrospectively with the cumulative effect recognized as of the date of adoption (“modified retrospective method”). We adopted the standard in the first quarter of fiscal 2019 under the modified retrospective approach. Under the new standard, we recognize estimated gift card breakage revenue proportionately to customer gift card usage over the expected gift card usage period rather than waiting until the likelihood of redemption becomes remote. Further, we recognize revenue related to exchanges upon shipment by us, rather than upon receipt by the customer. In the first quarter of fiscal 2019, the Company recorded a cumulative catch-up adjustment resulting in an increase to opening retained earnings, net of tax, of $0.4 million, comprised of the impact of $0.3 million from the change in revenue recognition related to gift cards and $0.1 million from the recognition of exchanges upon shipment. The impact to net revenue for the three months ended October 27, 2018, was an increase of $0.5 million as a result of applying the standard. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740), which amends existing guidance on the recognition of current and deferred income tax impacts for intra-entity asset transfers other than inventory. We adopted the standard in the first quarter of fiscal 2019 under the modified retrospective approach. As a result, a cumulative adjustment of $0.4 million, net of tax, was recorded to reduce opening retained earnings in connection with this adoption.

- Definition

Disclosure of accounting policy for investments in financial assets, including marketable securities (debt and equity securities with readily determinable fair values), investments accounted for under the equity method and cost method, securities borrowed and loaned, and repurchase and resale agreements. For marketable securities, the disclosure may include the entity's accounting treatment for transfers between investment categories and how the fair values for such securities are determined. Also, for all investments, an entity may describe its policy for assessing, recognizing and measuring impairment of the investment.

+ References + Details

Fair Value Measurements (Tables)

3 Months Ended

Oct. 27, 2018

Fair Value Disclosures [Abstract]

Schedule of Amortized Cost, Gross Unrealized Gains (Losses) and Fair Value of Available-for-sale Investments



	October 27, 2018
(in thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Financial Assets:
Investments:
U.S. Treasury securities	$	31,808	$	—	$	(12	)	$	31,796
Commercial paper	41,431		—		—			41,431
Asset-backed securities	34,723		5		(45		)	34,683
Corporate bonds	61,042		—		(97		)	60,945
Total	$	169,004	$	5	$	(154	)	$	168,855

Schedule of Fair Value of Available-for-sale Securities By Contractual Maturity

The following table sets forth the fair value of available-for-sale securities by contractual maturity as of October 27, 2018:



	October 27, 2018
(in thousands)	One Year or Less		Over One Year Through Five Years		Over Five Years		Total
Financial Assets:
Investments:
U.S. Treasury securities	$	31,796	$	—	$	—	$	31,796
Commercial paper	41,431		—		—		41,431
Asset-backed securities	5,933		28,750		—		34,683
Corporate bonds	5,825		55,120		—		60,945
Total	$	84,985	$	83,870	$	—	$	168,855

Schedule of Short-term and Long-term Investments Accounted for as Available-for-sale Measured at Fair Value on Recurring Basis



	October 27, 2018
(in thousands)	Level 1		Level 2		Level 3		Total
Financial Assets:
Cash equivalents:
Money market funds	$	862	$	—	$	—	$	862
Commercial paper	—		5,993		—		5,993
Investments:
U.S. Treasury securities	31,796		—		—		31,796
Commercial paper	—		41,431		—		41,431
Asset-backed securities	—		34,683		—		34,683
Corporate bonds	—		60,945		—		60,945
Total	$	32,658	$	143,052	$	—	$	175,710

Schedule of Changes in Fair Value of Preferred Stock Warrant Liability

The following table sets forth a summary of the changes in the fair value of the preferred stock warrant liability for the three months ended October 28, 2017 (in thousands):



(in thousands)	For the Three Months Ended October 28, 2017
Balance at July 29, 2017	$	26,679
Change in fair value	(9,071		)
Ending Balance at October 28, 2017	$	17,608

Stock-Based Compensation (Tables)

3 Months Ended

Oct. 27, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Stock Option Activity Under 2011 and 2017 Stock Plan

Stock option activity under the 2011 Plan and 2017 Plan is as follows:



	Options Outstanding
	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value (in thousands)
Balance – July 28, 2018	9,052,160		$	11.74	8.23	$	160,856
Authorized	—
Granted	105,061		$	38.69
Exercised	(578,107	)	$	3.39
Cancelled	(175,356	)	$	11.20
Balance – October 27, 2018	8,403,758		$	12.29	8.11	$	95,008

Summary of Restricted Stock Units Award Activity

The following table summarizes the restricted stock unit (“RSU”) award activity under the 2017 Plan:



	Unvested RSUs
	Class A Common Stock		Weighted- Average Grant Date Fair Value		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value (in thousands)
Unvested at July 28, 2018	2,432,326		$	21.58	3.50	$	71,778
Granted	759,776		$	40.73
Vested	(56,257	)	$	19.38
Forfeited	(95,337	)	$	23.45
Unvested at October 27, 2018	3,040,508		$	26.38	3.51	$	71,969

Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options

The fair value of stock options granted to employees was estimated at the grant date using the Black-Scholes option-pricing model with the following assumptions:



	For the Three Months Ended
	October 27, 2018		October 28, 2017
Expected term (in years)	5.1 - 6.2		5.6 - 6.5
Volatility	41.7 - 42.0%		42.1 - 43.5%
Risk free interest rate	2.8 - 3.0%		1.9 - 2.0%
Dividend yield	—	%	—	%

Income Taxes (Tables)

3 Months Ended

Oct. 27, 2018

Income Tax Disclosure [Abstract]

Schedule of Effective Tax Rate from Income

The following table summarizes our effective tax rate from income for the periods presented:



	For the Three Months Ended
(in thousands)	October 27, 2018			October 28, 2017
Income before income taxes	$	12,416		$	18,632
Provision for income taxes	1,738			5,144
Effective tax rate	14.0		%	27.6		%

Earnings Per Share Attributable to Common Stockholders (Tables)

3 Months Ended

Oct. 27, 2018

Earnings Per Share [Abstract]

Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted EPS

A reconciliation of the numerator and denominator used in the calculation of the basic and diluted EPS attributable to common stockholders is as follows:



	For the Three Months Ended
	October 27, 2018						October 28, 2017
(in thousands, except share and per share amounts)	Class A			Class B			Class B
Numerator:
Net income	$	4,084		$	6,594		$	13,488
Less: noncumulative dividends to preferred stockholders	—			—			(635		)
Less: undistributed earnings to participating securities	(5		)	(9		)	(8,938		)
Net income attributable to common stockholders - basic	4,079			6,585			3,915
Less: change in fair value of preferred stock warrant liability (net of tax)	—			—			(9,071		)
Add: adjustments to undistributed earnings to participating securities	1			—			6,503
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	6,585			—			—
Reallocation of undistributed earnings to Class B shares	—			85			—
Net income attributable to common stockholders - diluted	$	10,665		$	6,670		$	1,347
Denominator:
Weighted-average shares of common stock - basic	37,850,643			61,114,631			26,329,495
Conversion of Class B to Class A common shares outstanding	61,114,631			—			—
Effect of dilutive stock options and restricted stock units	5,574,178			4,260,911			5,876,621
Effect of potentially dilutive preferred stock warrants	—			—			1,055,966
Weighted-average shares of common stock - diluted	104,539,452			65,375,542			33,262,082
Earnings per share attributable to common stockholders:
Basic	$	0.11		$	0.11		$	0.15
Diluted	$	0.10		$	0.10		$	0.04

Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings Per Share

The following common stock equivalents were excluded from the computation of diluted earnings per share for the periods presented because including them would have been antidilutive:



	For the Three Months Ended
	October 27, 2018	October 28, 2017
Convertible preferred stock	—	59,511,055
Preferred stock warrants	—	—
Restricted stock units	750,607	—
Stock options to purchase Class A common stock	351,184	—
Stock options to purchase Class B common stock	2,239	954,706
Total	1,104,030	60,465,761

Description of Business - Additional Information (Details) $ / shares in Units, $ in Thousands		1 Months Ended	3 Months Ended
	Nov. 16, 2017 USD ($) class vote $ / shares shares	Dec. 31, 2017 USD ($) $ / shares shares	Oct. 27, 2018 USD ($) shares	Oct. 28, 2017 USD ($)	Jul. 28, 2018 shares	Nov. 17, 2017 shares
Class of Stock [Line Items]
Number of new classes of common stock authorized \| class	2
Common stock, conversion ratio	1
Offering costs \| $			$ 0	$ 528
Preferred stock, shares outstanding (in shares)			0		0	0
Preferred stock warrants outstanding (in shares)						0
IPO
Class of Stock [Line Items]
Proceeds from initial public offering, net of underwriting discounts paid \| $	$ 110,400
Underwriting discounts \| $	6,200
Offering costs \| $	$ 3,400
IPO \| Class A Common Stock
Class of Stock [Line Items]
Number of votes per share \| vote	1
Number of shares issued (in shares)	8,000,000
Price per share (in dollars per share) \| $ / shares	$ 15.00
IPO \| Class B Common Stock
Class of Stock [Line Items]
Number of votes per share \| vote	10
Number of shares converted as a result of the IPO (in shares)	59,511,055
Outstanding preferred stock warrants exercised (in shares)	1,066,225
Underwriters' Over-Allotment Option \| Class A Common Stock
Class of Stock [Line Items]
Number of shares issued (in shares)		1,175,557
Price per share (in dollars per share) \| $ / shares		$ 15.00
Net proceeds after deducting underwriting discounts and expenses \| $		$ 16,700

Summary of Significant Accounting Policies - Additional Information (Details) - USD ($)

3 Months Ended

Oct. 27, 2018

Oct. 28, 2017

Jul. 28, 2018

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Nonrefundable upfront styling fee

$ 20

Nonrefundable annual fee

$ 49

Discount for purchase of all items In shipment

25.00%

Refund reserve

$ 2,500,000

$ 2,300,000

Contractual liabilities

11,206,000

8,870,000

Cumulative effect of adopting accounting standards

^[1]

35,000

Increase in net revenue

366,236,000

$ 295,563,000

Upfront Styling Fees

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Contractual liabilities

10,100,000

7,600,000

Style Pass annual fees

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Contractual liabilities

1,100,000

Exchanges

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Contractual liabilities

200,000

Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Increase in net revenue

500,000

Deferred revenue

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Contractual liabilities

11,200,000

8,900,000

Revenue recognized

8,200,000

Gift card liability

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Contractual liabilities

6,300,000

6,800,000

Revenue recognized

100,000

Other current liabilities

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Contractual liabilities

800,000

2,700,000

Revenue recognized

$ 600,000

Retained Earnings

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Cumulative effect of adopting accounting standards

^[1]

35,000

Retained Earnings | Accounting Standards Update 2014-09

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Cumulative effect of adopting accounting standards

400,000

Retained Earnings | Accounting Standards Update 2014-09 | Exchanges

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Cumulative effect of adopting accounting standards

100,000

Retained Earnings | Accounting Standards Update 2014-09 | Gift cards

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Cumulative effect of adopting accounting standards

300,000

Retained Earnings | Accounting Standards Update 2016-16

Revenue, Initial Application Period Cumulative Effect Transition [Line Items]

Cumulative effect of adopting accounting standards

$ (400,000)

[1]	See Note 2, Summary of Significant Accounting Policies, of the Notes to the Condensed Consolidated Financial Statements for more details on the cumulative effect of adopting accounting standards.

Fair Value Measurements - Fair Value of Available-for-sale Securities (Details) $ in Thousands	Oct. 27, 2018 USD ($)
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 169,004
Gross Unrealized Gains	5
Gross Unrealized Losses	(154)
Fair Value	168,855
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	31,808
Gross Unrealized Gains	0
Gross Unrealized Losses	(12)
Fair Value	31,796
Commercial paper
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	41,431
Gross Unrealized Gains	0
Gross Unrealized Losses	0
Fair Value	41,431
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	34,723
Gross Unrealized Gains	5
Gross Unrealized Losses	(45)
Fair Value	34,683
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	61,042
Gross Unrealized Gains	0
Gross Unrealized Losses	(97)
Fair Value	$ 60,945

Fair Value Measurements - Fair Value of Available-for-Sale Securities by Contractual Maturity (Details) $ in Thousands	Oct. 27, 2018 USD ($)
Debt Securities, Available-for-sale [Line Items]
One Year or Less	$ 84,985
Over One Year Through Five Years	83,870
Over Five Years	0
Total	168,855
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
One Year or Less	31,796
Over One Year Through Five Years	0
Over Five Years	0
Total	31,796
Commercial paper
Debt Securities, Available-for-sale [Line Items]
One Year or Less	41,431
Over One Year Through Five Years	0
Over Five Years	0
Total	41,431
Asset-backed securities
Debt Securities, Available-for-sale [Line Items]
One Year or Less	5,933
Over One Year Through Five Years	28,750
Over Five Years	0
Total	34,683
Corporate bonds
Debt Securities, Available-for-sale [Line Items]
One Year or Less	5,825
Over One Year Through Five Years	55,120
Over Five Years	0
Total	$ 60,945

Fair Value Measurements - Schedule of Financial Instruments Measured at Fair Value on Recurring Basis Based on Fair Value Hierarchy (Details) $ in Thousands	Oct. 27, 2018 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	$ 168,855
Assets at fair value	175,710
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets at fair value	32,658
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets at fair value	143,052
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets at fair value	0
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	31,796
U.S. Treasury securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	31,796
U.S. Treasury securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
U.S. Treasury securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Commercial paper
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	41,431
Commercial paper \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Commercial paper \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	41,431
Commercial paper \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Asset-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	34,683
Asset-backed securities \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Asset-backed securities \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	34,683
Asset-backed securities \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Corporate bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	60,945
Corporate bonds \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Corporate bonds \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	60,945
Corporate bonds \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments at fair value	0
Money market funds \| Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	862
Money market funds \| Cash equivalents \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	862
Money market funds \| Cash equivalents \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	0
Money market funds \| Cash equivalents \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	0
Commercial paper \| Cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	5,993
Commercial paper \| Cash equivalents \| Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	0
Commercial paper \| Cash equivalents \| Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	5,993
Commercial paper \| Cash equivalents \| Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents at fair value	$ 0

Fair Value Measurements - Schedule of Changes in Fair Value of Preferred Stock Warrant Liability (Details) $ in Thousands	3 Months Ended
	Oct. 28, 2017 USD ($)
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation
Balance at July 29, 2017	$ 26,679
Change in fair value	(9,071)
Ending Balance at October 28, 2017	$ 17,608

Accrued Liabilities - Schedule of Accrued Liabilities (Details) - USD ($) $ in Thousands	Oct. 27, 2018	Jul. 28, 2018
Payables and Accruals [Abstract]
Compensation and related benefits	$ 7,019	$ 10,680
Advertising	14,075	10,456
Sales taxes	8,399	7,066
Shipping and freight	11,271	4,801
Accrued accounts payable	6,146	4,567
Inventory purchases	14,709	506
Other	5,479	4,961
Total accrued liabilities	$ 67,098	$ 43,037

Preferred Stock Warrant Liability (Details)	24 Months Ended
Preferred Stock Warrant Liability (Details)	Dec. 31, 2013 $ / shares shares
Class of Stock [Line Items]
Warrant term	10 years
2012 Financing Arrangements \| Series Seed Convertible Preferred Stock
Class of Stock [Line Items]
Outstanding preferred stock warrants exercised (in shares) \| shares	375,230
Exercise price of warrants (in dollars per share) \| $ / shares	$ 0.1066
2012 Financing Arrangements \| Series A Convertible Preferred Stock
Class of Stock [Line Items]
Outstanding preferred stock warrants exercised (in shares) \| shares	66,265
Exercise price of warrants (in dollars per share) \| $ / shares	$ 0.22636
2013 Financing Arrangements \| Series A1 Convertible Preferred Stock
Class of Stock [Line Items]
Outstanding preferred stock warrants exercised (in shares) \| shares	624,730
Exercise price of warrants (in dollars per share) \| $ / shares	$ 0.2401
2013 Financing Arrangements \| Series B Convertible Preferred Stock
Class of Stock [Line Items]
Outstanding preferred stock warrants exercised (in shares) \| shares	308,315
Exercise price of warrants (in dollars per share) \| $ / shares	$ 0.486516

Commitments and Contingencies - Additional Information (Details) $ in Millions		1 Months Ended
	Oct. 12, 2018 USD ($)	Nov. 16, 2018 lawsuit
Loss Contingencies [Line Items]
Term of operating lease	5 years
Minimum term of operating lease	2 years
Length of notice required to terminate operating lease	6 months
Future minimum operating lease payments \| $	$ 11.1
Subsequent event
Loss Contingencies [Line Items]
Number of lawsuits		3
Number of expected consolidated lawsuits		1

Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Changes in Accumulated Other Comprehensive Income (Loss) By Component
Stockholders' equity, beginning balance	$ 315,072	$ 61,861
Other comprehensive income (loss) before reclassifications	(56)
Total other comprehensive loss, net of tax	(56)	0
Stockholders' equity, ending balance	333,503	78,267
Tax benefit for gains and losses on available-for-sale securities	67
Available-for-sale Securities
Changes in Accumulated Other Comprehensive Income (Loss) By Component
Stockholders' equity, beginning balance	0
Other comprehensive income (loss) before reclassifications	(82)
Total other comprehensive loss, net of tax	(82)
Stockholders' equity, ending balance	(82)
Foreign Currency Translation
Changes in Accumulated Other Comprehensive Income (Loss) By Component
Stockholders' equity, beginning balance	0
Other comprehensive income (loss) before reclassifications	26
Total other comprehensive loss, net of tax	26
Stockholders' equity, ending balance	26
Accumulated Other Comprehensive Loss
Changes in Accumulated Other Comprehensive Income (Loss) By Component
Stockholders' equity, beginning balance	0	0
Total other comprehensive loss, net of tax	(56)
Stockholders' equity, ending balance	$ (56)	$ 0

Stock-Based Compensation - Additional Information (Details) - USD ($)	1 Months Ended	3 Months Ended		12 Months Ended
	Jul. 31, 2017	Oct. 27, 2018	Oct. 28, 2017	Jul. 28, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant date fair value of options (in dollars per share)		$ 17.22	$ 7.55
Unrecognized compensation expense related to unvested options and RSU’s, net of estimated forfeitures		$ 121,300,000
Unrecognized compensation expense related to unvested options weighted average recognition period		3 years 21 days
Employees
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense		$ 6,600,000	$ 2,000,000
Stock Options \| Certain Members of Executive Management Team
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options vesting term	24 months
Aggregate grant-date fair value of option awards	$ 14,000,000
Stock based compensation expense related to prior periods	$ 0			$ 500,000
Stock Options \| Certain Members of Executive Management Team \| Class B Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)	1,097,463
2011 Equity Incentive Plan \| Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Remaining vesting after first anniversary of grant date		3 years
Options exercisable period		10 years
2011 Equity Incentive Plan \| Stock Options \| First Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock options vesting percentage		25.00%
2011 Equity Incentive Plan \| Stock Options \| Second Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock options vesting percentage		25.00%
2011 Equity Incentive Plan \| Stock Options \| Third Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock options vesting percentage		25.00%
2011 Equity Incentive Plan \| Stock Options \| Fourth Anniversary
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee stock options vesting percentage		25.00%
2017 Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized for issuance (in shares)		28,423,374
Number of shares available for grant (in shares)		3,149,479

Stock-Based Compensation - Summary of Stock Option Activity Under 2011 and 2017 Stock Plan (Details) - 2011 and 2017 Plans - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 27, 2018	Jul. 28, 2018
Number of Options
Outstanding, beginning balance (in shares)	9,052,160
Granted (in shares)	105,061
Exercised (in shares)	(578,107)
Cancelled (in shares)	(175,356)
Outstanding, ending balance (in shares)	8,403,758	9,052,160
Weighted- Average Exercise Price
Outstanding, beginning balance (in dollars per share)	$ 11.74
Granted (in dollars per share)	38.69
Exercised (in dollars per share)	3.39
Cancelled (in dollars per share)	11.20
Outstanding, ending balance (in dollars per share)	$ 12.29	$ 11.74
Weighted- Average Remaining Contractual Life (in Years)
Outstanding, weighted-average remaining contractual life	8 years 1 month 10 days	8 years 2 months 23 days
Aggregate Intrinsic Value (in thousands)
Outstanding, aggregate intrinsic value	$ 95,008	$ 160,856

Stock-Based Compensation - Summary of Restricted Stock Units Award Activity (Details) - Class A Common Stock - Restricted stock units - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Oct. 27, 2018	Jul. 28, 2018
Class A Common Stock
Unvested, beginning balance (in shares)	2,432,326
Granted (in shares)	759,776
Vested (in shares)	(56,257)
Forfeited (in shares)	(95,337)
Unvested, ending balance (in shares)	3,040,508	2,432,326
Weighted- Average Grant Date Fair Value
Unvested, beginning balance (in dollars per share)	$ 21.58
Granted (in dollars per share)	40.73
Vested (in dollars per share)	19.38
Forfeited (in dollars per share)	23.45
Unvested, ending balance (in dollars per share)	$ 26.38	$ 21.58
Weighted- Average Remaining Contractual Life (in Years)
Unvested, weighted-average remaining contractual life	3 years 6 months 5 days	3 years 6 months
Aggregate Intrinsic Value (in thousands)
Unvested, aggregate intrinsic value	$ 71,969	$ 71,778

Stock-Based Compensation - Summary of Assumptions Used in Black-Scholes Option-Pricing Model to Determine Fair Value of Stock Options (Details)	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Volatility, minimum	41.70%	42.10%
Volatility, maximum	42.00%	43.50%
Risk free interest rate, minimum	2.80%	1.90%
Risk free interest rate, maximum	3.00%	2.00%
Dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	5 years 1 month 6 days	5 years 7 months 6 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (in years)	6 years 2 months 12 days	6 years 6 months

Income Taxes - Schedule of Effective Tax Rate from Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Income Tax Disclosure [Abstract]
Income before income taxes	$ 12,416	$ 18,632
Provision for income taxes	$ 1,738	$ 5,144
Effective tax rate	14.00%	27.60%

Earnings Per Share Attributable to Common Stockholders - Additional Information (Details)	Nov. 16, 2017 class vote
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Number of new classes of common stock authorized \| class	2
Common stock, conversion ratio	1
IPO \| Class A Common Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Number of votes per share	1
IPO \| Class B Common Stock
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Number of votes per share	10

Earnings Per Share Attributable to Common Stockholders - Reconciliation of Numerator and Denominator Used in Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Numerator:
Net income	$ 10,678	$ 13,488
Net income attributable to common stockholders - basic	10,664	3,915
Net income attributable to common stockholders - diluted	$ 10,665	$ 1,347
Denominator:
Weighted-average shares of common stock - basic (in shares)	98,965,274	26,329,495
Weighted-average shares of common stock - diluted (in shares)	104,539,452	33,262,082
Earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.11	$ 0.15
Diluted (in dollars per share)	$ 0.10	$ 0.04
Class A Common Stock
Numerator:
Net income	$ 4,084
Less: noncumulative dividends to preferred stockholders	0
Less: undistributed earnings to participating securities	(5)
Net income attributable to common stockholders - basic	4,079
Less: change in fair value of preferred stock warrant liability (net of tax)	0
Add: adjustments to undistributed earnings to participating securities	1
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	6,585
Reallocation of undistributed earnings to Class B shares	0
Net income attributable to common stockholders - diluted	$ 10,665
Denominator:
Weighted-average shares of common stock - basic (in shares)	37,850,643
Conversion of Class B to Class A common shares outstanding (in shares)	61,114,631
Effect of dilutive stock options and restricted stock units (in shares)	5,574,178
Effect of potentially dilutive preferred stock warrants (in shares)	0
Weighted-average shares of common stock - diluted (in shares)	104,539,452
Earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.11
Diluted (in dollars per share)	$ 0.10
Class B Common Stock
Numerator:
Net income	$ 6,594	$ 13,488
Less: noncumulative dividends to preferred stockholders	0	(635)
Less: undistributed earnings to participating securities	(9)	(8,938)
Net income attributable to common stockholders - basic	6,585	3,915
Less: change in fair value of preferred stock warrant liability (net of tax)	0	(9,071)
Add: adjustments to undistributed earnings to participating securities	0	6,503
Reallocation of undistributed earnings as a result of conversion of Class B to Class A shares	0	0
Reallocation of undistributed earnings to Class B shares	85	0
Net income attributable to common stockholders - diluted	$ 6,670	$ 1,347
Denominator:
Weighted-average shares of common stock - basic (in shares)	61,114,631	26,329,495
Conversion of Class B to Class A common shares outstanding (in shares)	0	0
Effect of dilutive stock options and restricted stock units (in shares)	4,260,911	5,876,621
Effect of potentially dilutive preferred stock warrants (in shares)	0	1,055,966
Weighted-average shares of common stock - diluted (in shares)	65,375,542	33,262,082
Earnings per share attributable to common stockholders:
Basic (in dollars per share)	$ 0.11	$ 0.15
Diluted (in dollars per share)	$ 0.10	$ 0.04

Earnings Per Share Attributable to Common Stockholders - Schedule of Common Stock Equivalents Excluded from Computation of Diluted Earnings (Loss) Per Share (Details) - shares	3 Months Ended
	Oct. 27, 2018	Oct. 28, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings (loss) per share	1,104,030	60,465,761
Convertible preferred stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings (loss) per share	0	59,511,055
Preferred stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings (loss) per share	0	0
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings (loss) per share	750,607	0
Stock Options \| Class A Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings (loss) per share	351,184	0
Stock Options \| Class B Common Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of diluted earnings (loss) per share	2,239	954,706

Income Taxes - Additional Information (Details) $ in Millions	12 Months Ended
	Jul. 28, 2018 USD ($)
Income Tax Disclosure [Abstract]
Increase in income tax expense as a result of remeasurement of net deferred tax assets	$ 6.7

Fair Value Measurements - Additional Information (Details)	12 Months Ended
	Jul. 28, 2018 USD ($)
Fair Value Disclosures [Abstract]
Financial instruments measured at fair value	$ 0