StockX chief executive Scott Cutler will step down from his role at the Detroit-based sneaker resale platform at the end of the year, The Business of Fashion can exclusively reveal. He will be replaced by StockX’s co-founder, president and current chief operating officer Greg Schwartz.
Cutler, one of the company’s early investors and a one-time advisor to its founders who assumed the role of CEO in 2019, said it was always the intention to hand control of the platform to a new leader once it reached a certain scale. (StockX is privately held, does not regularly break out earnings.) Schwartz will take the top job effective Jan. 1, and the company said Cutler will assume the role of advisor to ensure an effective transition.
Schwartz’s elevation to CEO is the latest part of an ongoing leadership reshuffle which saw Nick Karratt announced as the company’s new chief marketing officer in October, after his predecessor Deena Bahri — the first person in the company to hold that role — was laid off as part of a restructuring in January which impacted around 40 jobs.
Even as a market leader, StockX has not been immune to the turbulent market conditions. The platform was founded in 2016, as streetwear and sneaker mania slowly began to take hold among mainstream and luxury consumers. It was well positioned to cash in when hype around buying and selling sneakers like Yeezys, Dunks and Jordans — both limited edition and general release models — reached an unprecedented peak during the pandemic. In early 2021, StockX raised $255 million at a $3.8 billion valuation after generating over $400 million in sales the year prior.
In the years since, however, resale prices have plummeted for many of the models which drove the bulk of sales as interest in hype sneakers has faded, slashing margins for platforms and individual resellers across the sector. While brands like Asics, Salomon and even Adidas increasingly drive sales on the secondary market now, pairs typically change hands for lower average premiums than once-coveted Jordans and Air Force Ones. Last year, major European sneaker resale platforms like Dutch company Restocks and France’s Kikikickz were declared bankrupt.
StockX, along with other larger players in the space Stadium Goods and GOAT — has held its ground by diversifying into new categories like collectibles and apparel. Paying attention to all categories will be a key focus of Schwartz’ tenure and one that he said will be fundamental to the company’s long term growth.
“The diversification across [the products on the platform] where brands like Hoka and New Balance have begun to take more share is something that’s a benefit for us as a company because we’ve had to learn how to adapt,” Schwartz said.
The platform also launched big strategic partnerships with retailers like Walmart and a long-term sponsorship of local NBA franchise the Detroit Pistons, to broaden its appeal and cement its association with the world of sport, Schwartz said.
Though StockX has enacted several rounds of layoffs in recent years, its leadership says the platform remains well-positioned and on a positive trajectory.
“We take these decisions in order to drive efficiency and to improve the customer experience and to allow us to have the resources to invest in those improvements,” said Cutler. “As a company we remain well capitalised and in a good position to weather the changes in the market.”
