Stitch Fix (NASDAQ:SFIX) Releases Quarterly Earnings Results

Stitch Fix (NASDAQ:SFIX) announced its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.04, FiscalAI reports. The business had revenue of $324.42 million for the quarter, compared to analysts’ expectations of $325.50 million. Stitch Fix had a negative return on equity of 9.35% and a negative net margin of 1.43%.The company’s revenue for the quarter was up 4.2% compared to the same quarter last year. During the same period last year, the firm earned ($0.07) earnings per share.

Here are the key takeaways from Stitch Fix’s conference call:

• Fiscal 2026 revenue grew 6.4% to $1.35 billion, marking six consecutive quarters of year-over-year revenue growth and outperforming the broader U.S. apparel market. Adjusted EBITDA margin reached 4%, free cash flow was $19.8 million, and the company ended the year with $220.9 million in cash and no debt.
• Client monetization continued to improve, with revenue per active client reaching a record $592 and average order value increasing 4.9% in Q4. Larger Fixes, broader assortments, and category expansion drove strong growth in activewear and athleisure (+21%) and footwear (+14%).
• The consumer environment has weakened, with higher customer acquisition costs pressuring new-client growth and discretionary Freestyle purchases. Active clients fell 1.4% year over year to 2.277 million in Q4, and management delayed its return to active-client growth despite continued confidence in retention.
• Fiscal 2027 guidance reflects near-term pressure, with revenue expected at $1.31 billion-$1.36 billion versus $1.35 billion in FY2026 and adjusted EBITDA of $27 million-$42 million. Q1 results will be affected by shifted shipment timing and a temporary post-checkout technology issue, while higher advertising and AI investments are expected to reduce profitability.
• Management highlighted continued upside from Stitch Fix Vision, family accounts, AI-enabled operations, and targeted offerings such as GLP-1-related styling. More than 22 million Vision images have been shared, and users engaging with Vision continue to show materially higher Freestyle spending.

Stitch Fix Stock Performance

Shares of NASDAQ SFIX opened at $2.82 on Thursday. The stock’s 50-day simple moving average is $3.44 and its 200-day simple moving average is $3.53. The firm has a market capitalization of $376.26 million, a PE ratio of -35.25 and a beta of 2.27. Stitch Fix has a fifty-two week low of $2.76 and a fifty-two week high of $5.74.

Stitch Fix News Summary

Here are the key news stories impacting Stitch Fix this week:

• Positive Sentiment: Adjusted loss beat expectations: Stitch Fix reported a fourth-quarter loss of approximately $0.02 per share, better than the $0.06 loss analysts expected and improved from a $0.07 loss a year earlier. Stitch Fix Q4 earnings and guidance
• Positive Sentiment: Revenue continued to grow: Fourth-quarter revenue rose 4.2% year over year to $324.4 million, while the company said its loss narrowed, reflecting progress in its restructuring and operating improvements. Revenue was only modestly below the $325.5 million consensus estimate. Stitch Fix fiscal 2026 results
• Positive Sentiment: AI tools are encouraging spending: CEO Matt Baer said customers using Stitch Fix’s AI-generated virtual try-on feature are producing a “significant lift” in spending, offering a potential growth driver as the company improves its digital shopping experience. Stitch Fix AI try-ons and shopper spending
• Neutral Sentiment: Management described fiscal 2026 as transformative: The company highlighted a stronger operating foundation, a redesigned client experience and a more compelling product assortment, but investors will look for evidence that these initiatives can accelerate growth.
• Negative Sentiment: Fiscal 2027 guidance fell short: Stitch Fix forecast first-quarter revenue of $323 million to $328 million, well below the $355.5 million analyst consensus. Full-year fiscal 2027 revenue guidance of $1.3 billion to $1.4 billion also implied limited growth and was below the roughly $1.4 billion consensus expectation. Stitch Fix outlook and revenue guidance
• Negative Sentiment: Consumer spending remains pressured: Management cited soft consumer demand as a factor weighing on the fiscal 2027 outlook. The company remains unprofitable, with a negative net margin and analysts expecting another full-year loss, increasing the importance of stronger sales execution.

Wall Street Analyst Weigh In

Several brokerages have recently issued reports on SFIX. Northland Securities started coverage on Stitch Fix in a research note on Thursday, May 28th. They issued an “outperform” rating and a $5.00 price objective for the company. Weiss Ratings raised shares of Stitch Fix from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, July 13th. Finally, UBS Group decreased their price target on shares of Stitch Fix from $4.50 to $4.00 and set a “neutral” rating for the company in a research note on Wednesday, September 2nd. One investment analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and an average target price of $5.00.

Insider Buying and Selling

In other Stitch Fix news, CFO David Aufderhaar sold 67,960 shares of the stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $3.79, for a total value of $257,568.40. Following the transaction, the chief financial officer directly owned 1,102,369 shares in the company, valued at $4,177,978.51. This represents a 5.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Anthony Bacos sold 70,011 shares of the company’s stock in a transaction on Monday, June 29th. The shares were sold at an average price of $4.42, for a total transaction of $309,448.62. Following the completion of the transaction, the insider owned 1,051,994 shares of the company’s stock, valued at approximately $4,649,813.48. The trade was a 6.24% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 487,971 shares of company stock valued at $1,900,517 over the last ninety days. 16.09% of the stock is currently owned by corporate insiders.

About Stitch Fix

Stitch Fix, Inc is an online personal styling company that uses data science, personalization technology and human stylists to recommend apparel and accessories to customers. Its offerings include clothing, shoes and accessories across categories such as women’s, men’s and children’s apparel, with selections tailored to individual preferences, sizes, budgets and lifestyles.

The company’s primary service, traditionally known as a “Fix,” delivers a curated selection of items for customers to try at home, after which they can purchase the items they want and return the rest.