When Stitch Fix founder Katrina Lake announced last month that she was stepping down as CEO, many were stunned. Investors, of course, were stunned; the personal styling and shopping service's stock price fell more than 5% after the announcement (open in new tab). Business magazines, of course, immediately began the guessing game of "why now?"

Perhaps a surprise to many, this is Lake's plan, which has been quietly in motion while the world has been shut down, while the fashion market has been in the doldrums (opens in new tab), and while Stitch Fix has been carefully treading through the minefield that is the retail industry in 2020. Without a doubt, it has been a challenging year for countless businesses, especially those whose revenue model is based on the sale of clothing (worn outside the home.) While Stitch Fix's enterprise value has increased overall since 2019, the company has not been immune to difficulties; by June 2020, the company will have 1,400 stylists (opens in new tab), or 18% of its workforce, were laid off (opens in new tab).

But Lake's decision to step down as CEO and instead take on the role of the company's executive chairman was not made in haste or fear of the retail frenzy. The 38-year-old Lake says, "This decision is something I've been thinking about for a long time, to be honest with you." She says she began fantasizing about the move "years and years ago" and finally broached the subject with the Stitch Fix board a few months before the pandemic. Lake officially assumed her new role in August, handing the company over to Elizabeth Spalding, who joined Stitch Fix as president in January 2020.

"If someone had started [Stitch Fix], I would have gladly worked for them. I didn't have to be the founder. I didn't have to be the face of it."

But Lake was that face, and her name was synonymous (opens in new tab) with the brand and its huge success ($1.7 billion in annual revenue and nearly 4 million customers). In the decade since she founded the company (she came up with the idea in 2011, when she was a student at Harvard Business School), Lake has been the poster child for successful female founders. She graced the cover of Fast Company. She was the star speaker on panels at nearly every women's conference (including Marie Claire's "Power Trip") and a frequent guest on podcasts. Everyone wanted to know her, learn from her, and be her.

Her pseudo-celebrity status was further elevated in 2017 when Lake took Stitch Fix public. And despite the immediate accolades, there were very real challenges, which Lake alluded to but did not specifically discuss. For Lake, being a female founder in the tech industry seemed to be somewhat of a distraction from what she really wanted to focus on: the growth and evolution of the brand. She said, "There are certainly elements in the lives of publicly traded companies and CEOs that I don't mind leaving behind. I think there is a public dimension to everything we do. Of course, that's part of my job. But it's also part of a stressful job."

Not many female founders of such success stories have stepped down of their own volition (although some high-profile female founders recently stepped down as a result of public outcry over reported discriminatory or racist practices), and women who lead public companies and pass the baton to another woman are even fewer (four to be exact). Lake, however, has always been a pioneer. She is one of the few female unicorns (a term meaning an enterprise value exceeding $1 billion); when she led Stitch Fix to an IPO, she became the youngest female founder in history. (Whitney Wolf Heard, who cites Lake as a mentor, has since taken over that title, but Lake admits she gladly gave it up.) In February 2021, Lake, who reportedly owns 10% of Stitch Fix, will be (opens in new tab) America's self-made billionaire (opens in new tab), becoming one of 19 women in the United States to become a self-made billionaire. (Open in new tab)-even if only for a brief moment when the company's stock price rose 282%.During her tenure as CEO, she has promoted pay equity and parental leave. When she steps down and retires to a life of bongs and Netflix trifectas, her legacy will be secure.

But Lake will never do so. She is not the kind of person to stop leading just because her job title doesn't have "chief" in it. Her unwavering belief in the brand and its power to shape shopping is what drives her. She is also not an entrepreneur for the sake of being an entrepreneur: she says she no longer has billion-dollar ideas, and her words feel genuine, not PR placeholder. 'I'm not going anywhere. My full-time job is at Stitch Fix. I have no plans for a second career."

Ensuring Stitch Fix's future has always been a top priority. When Spalding was hired as president, an acquisition was imminent. Says Lake. 'Succession planning was part of the reason we brought her on board. From the moment I met Elizabeth, the idea of this transition was always intended. There was always a belief that someone else could lead Stitch Fix in the next chapter." Spaulding, as CEO, would report to the board of directors, where Lake would have a seat. However, Lake would effectively become an employee of his own company and would be beholden to Spaulding.

For an ego-maniac (which, realistically speaking, many CEOs are), that may create strife. But for Lake and Spalding, who have been building trust over the past year (Spalding is gradually assuming more responsibility within the company, including becoming the primary contact with investors), this dynamic is empowering, not threatening. Katrina has been an inspiration to all of us at Stitch Fix and to the industry as a whole." By dedicating her time to social impact and sustainability, Katrina will help us continue to disrupt our industry and create the positive change we need."

Lake hopes that this move will set a precedent for other founders looking to take a similar leap forward. Lake ponders whether the average male founder would choose to relinquish power if he thought it would benefit the company, saying, "I think the old model of CEO and leadership has a strong ego and little sense of purpose or servant leadership." 'I think in the old model, it was difficult to pass the baton or give up the reins for fear of being seen as weak. As employees look to different types of leadership, hopefully there will be less ego-centric motives."

What truly defines Lake as a supervisor is her self-awareness and commitment to the success of the company. She has every reason to have a big ego, but she doesn't. She could have been on the cover of a magazine, but chose to leave the next chapter of the company to another brilliant, savvy, experienced, and capable woman. Many speculate that it will be a chapter that focuses on direct sales, Spaulding's forte, rather than the traditional "fix it" model where customers get a box of clothes that an algorithm predicts they will like.

Now that the secret is out, Lake is feeling all kinds of emotions. Excitement, nervousness, and hope. Relief also comes to mind, but I'm not sure if that captures the full range of emotions." I don't know if "relief" is the right word, but there is definitely a sense of "openness" and "authenticity.

She is anxious to host dinner parties again. Before the pandemic, she used to host monthly dinner parties featuring music artists like Prince and Fleetwood Mac. While her new role has yet to materialize, "I haven't landed on exactly what the roadmap is going to be," she intends to devote more time and energy to Stitch Fix's sustainability and social impact efforts. (opens in new tab) The brand is considering launching a resale division and developing recycled fabrics (opens in new tab).

For now, Lake continues to lead the company into a new future. "I've always felt connected to and proud of the business," Lake said. But you don't have to be the boss to feel that way."

Spoken like a true boss.