In its latest quarterly filing StitchFix (SFIX), a digital fashion platform, announced plans to slash its salaried workforce by 15%, or 4% of the total workforce. The company expects to take a related cash charge of between $15-$20 million.

If only the company would tighten its belt when it comes to share repurchases.

Of greater concern to investors than layoffs is management’s insistence on buying back shares which have been cut in half year-to-date and by 85% in the past year.

In the quarter ended April 30, 2022, StitchFix spent $19 million repurchasing 1.6 million shares now worth $10.7 million. The company destroyed $8.3 million in value with a buyback designed, in part, to prop up underwater equity awards for employees now being fired.

It’s the second consecutive quarter StitchFix’s new buyback has instantly destroyed value since the program was approved by the Board of Directors in January 2022. In just four months since the buyback was announced, StitchFix has spent $30 million repurchasing 2.3 million shares now worth $15.2 million (based on an after hours price of $6.59).

The $14.8 million in value the StitchFix buyback has destroyed thus far is nearly equal to the expense associated with the aforementioned layoffs. Expect the repurchases to continue as $120 million remains on the authorization, or approximately 14% of the company’s Enterprise Value.

StitchFix management appears no better at investing than it is selling apparel online.