Since our Exclusive Report for DuDil+ subscribers exposed an aggressive Revenue Recognition policy and concerning inventory build at StitchFix (SFIX), a styling and apparel company, shares have fallen 73.4%. In the quarter ending January 29, 2022, Stitch Fix revealed details about its new $150 million share repurchase authorization. In the latest 10-Q, StitchFix disclosed the number of shares recently repurchased:

“As of January 29, 2022, the Company has repurchased 682,184 shares of Class A common stock for approximately $11.0 million under the 2022 Repurchase Program.”

If we use the Friday January 28th closing price of $14.87, shares have since declined 28.3% as of this writing. The company’s buyback, thus far, has destroyed $2.87 million in shareholder value. Later, StitchFix said the buyback could diminish its cash reserves and warned it may issue equity and dilute shareholders in the future.

Executives may have believed they were purchasing shares at a bargain but employees did not. Our Exclusive Report documented the exodus, explaining the company’s stylists— who select outfits for customers— are quitting after Stitch Fix’s new CEO stopped allowing them to choose their own hours. Stylists also weren’t happy when the CEO acknowledged they were helping to train the algorithm that would one day replace them in making fashion suggestions.

The latest quarterly filing reveals the Great StitchFix Resignation has accelerated. The number of forfeited restricted stock units (RSUs) increased to 2.18 million units, or 48.9% from the previous year. The forfeited RSUs are equivalent to 21.1% of the total number of unvested RSUs.

In bolting, employees forfeited $23.2 million at the current share price.

Expect the exodus to continue since the unvested RSUs have a weighted average price of $31.36, meaning StitchFix shares will have to rise 200% before employees can cash out above the grant date fair value.

With $139 million left on StitchFix’s buyback, executives might take a cue from employees and steer clear of the company’s stock. Shareholders would be nearly $3 million better off had management’s judgment been as good as that of departing employees.