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Stitch Fix posted the sixth straight quarter of year-over-year revenue growth, with Q4 sales up 4.2%.
Revenue per active client reached a record $592, while active clients declined 1.4% year over year.
SFIX expects fiscal 2027 revenues of $1.31-$1.36 billion and adjusted EBITDA of $27-$42 million.
Stitch Fix, Inc. (SFIX - Free Report) reported a narrower-than-expected adjusted loss for the fourth quarter of fiscal 2026, while revenues fell slightly short of the Zacks Consensus Estimate. Revenues and revenue per active client increased year over year, but the active-client count declined. Shares fell 17.7% in after-hours trading on Sept. 23, as the company’s cautious fiscal 2027 outlook weighed on sentiment.
Management expects a more challenging consumer environment and higher client acquisition costs to temper growth in fiscal 2027. Its adjusted EBITDA outlook also reflects planned investments in advertising and technology, including artificial intelligence.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
SFIX reported an adjusted loss of 1 cent per share, narrower than the Zacks Consensus Estimate of an adjusted loss of 6 cents and the year-ago adjusted loss of 7 cents. On a GAAP basis, the company reported a loss of 2 cents per share compared with a loss of 7 cents a year earlier.
Net revenues of $324.4 million increased 4.2% from $311.2 million a year earlier, but came in just below the $325 million consensus estimate. The quarter marked the company’s sixth consecutive quarter of year-over-year revenue growth.
Active clients totaled 2.277 million, down 1.4% both year over year and sequentially. Revenue per active client reached a record $592, up 7.8% from the prior-year quarter. Fix average order value rose 4.9%, supported by more items per Fix and a favorable assortment mix. Both the women’s and men’s Fix businesses grew, with the men’s business posting double-digit growth for the fifth consecutive quarter.
Across the women’s and men’s businesses, activewear and athleisure sales increased 21% year over year, while footwear grew 14%. Client retention improved sequentially for the eighth consecutive quarter. Management said higher acquisition costs weighed on its ability to attract and re-engage clients.
Insight Into SFIX’s Margins & Expenses
In the fiscal fourth quarter, this Zacks Rank #3 (Hold) company’s gross profit rose 4.2% year over year to $141.4 million, while gross margin held steady at 43.6%. Stitch Fix said inventory management helped offset higher transportation costs and investments in new merchandise categories.
Selling, general and administrative expenses declined to $145.7 million from $146.9 million a year earlier. Advertising represented 9.9% of revenues. The operating loss narrowed to $4.4 million from $11.2 million.
Adjusted EBITDA increased to $10.8 million from $8.7 million in the prior-year quarter, exceeding the company’s $7-$10 million guidance range. Adjusted EBITDA margin improved to 3.3% from 2.8%. Management attributed the guidance beat largely to lower fixed operating expenses.
SFIX’s Financial Snapshot
Stitch Fix ended fiscal 2026 with $220.9 million in cash, cash equivalents and investments, and no debt. The company generated $9.1 million in operating cash flow and $4.4 million in free cash flow during the fourth quarter.
SFIX repurchased 2.7 million shares for $11.3 million in the fourth quarter. For fiscal 2026, it bought back 7.2 million shares for $26.4 million, leaving $93.6 million under the existing authorization.
SFIX Caps Fiscal 2026 With Better Profitability
Full-year net revenues increased 6.4% to $1.35 billion, marking the company's first full year of revenue growth since fiscal 2021. Gross margin was 43.7%, down 70 basis points year over year.
Adjusted EBITDA increased to $53.4 million from $49.1 million, while adjusted EBITDA margin edged up to 4% from 3.9%. The full-year net loss narrowed to $12.6 million from $28.8 million, and free cash flow increased to $19.8 million from $9.3 million.
Stitch Fix’s FY’27 Guidance
For the first quarter of fiscal 2027, management expects revenues of $323-$328 million, implying a year-over-year decline of 5.6% to 4.1%. Adjusted EBITDA is projected at $3-$6 million.
The first-quarter outlook reflects two temporary factors affecting Fix volume. Some shipments were moved from the first quarter of fiscal 2027 into the fourth quarter of fiscal 2026. An unintended August change to the post-checkout offer flow also limited the number of clients eligible to request another Fix. Management said the issue has been corrected and will not affect results beyond the first quarter.
For fiscal 2027, Stitch Fix expects revenues to be in the range of $1.31-$1.36 billion, representing a year-over-year change ranging from a 2.8% decline to 0.9% growth. Adjusted EBITDA is forecast at $27-$42 million compared with $53.4 million in fiscal 2026. Management expects gross margin of 43-44% and positive free cash flow for the year. The outlook reflects a lower active-client starting point, a more challenging consumer environment and planned growth investments.
SFIX Stock Past Three-Month Performance
Image Source: Zacks Investment Research
SFIX stock has lost 34.4% over the past three months compared with the industry’s 12.8% decline.
Stocks to Consider
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 62.1% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
FIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 19.7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.
View the Zacks #1 Rank List
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Stitch Fix Stock Falls 18% Despite Narrower Q4 Loss & Higher Revenues
Key Takeaways
Stitch Fix, Inc. (SFIX - Free Report) reported a narrower-than-expected adjusted loss for the fourth quarter of fiscal 2026, while revenues fell slightly short of the Zacks Consensus Estimate. Revenues and revenue per active client increased year over year, but the active-client count declined. Shares fell 17.7% in after-hours trading on Sept. 23, as the company’s cautious fiscal 2027 outlook weighed on sentiment.
Management expects a more challenging consumer environment and higher client acquisition costs to temper growth in fiscal 2027. Its adjusted EBITDA outlook also reflects planned investments in advertising and technology, including artificial intelligence.
Stitch Fix, Inc. Price, Consensus and EPS Surprise
Stitch Fix, Inc. price-consensus-eps-surprise-chart | Stitch Fix, Inc. Quote
More on Stitch Fix’s Q4 Results
SFIX reported an adjusted loss of 1 cent per share, narrower than the Zacks Consensus Estimate of an adjusted loss of 6 cents and the year-ago adjusted loss of 7 cents. On a GAAP basis, the company reported a loss of 2 cents per share compared with a loss of 7 cents a year earlier.
Net revenues of $324.4 million increased 4.2% from $311.2 million a year earlier, but came in just below the $325 million consensus estimate. The quarter marked the company’s sixth consecutive quarter of year-over-year revenue growth.
Active clients totaled 2.277 million, down 1.4% both year over year and sequentially. Revenue per active client reached a record $592, up 7.8% from the prior-year quarter. Fix average order value rose 4.9%, supported by more items per Fix and a favorable assortment mix. Both the women’s and men’s Fix businesses grew, with the men’s business posting double-digit growth for the fifth consecutive quarter.
Across the women’s and men’s businesses, activewear and athleisure sales increased 21% year over year, while footwear grew 14%. Client retention improved sequentially for the eighth consecutive quarter. Management said higher acquisition costs weighed on its ability to attract and re-engage clients.
Insight Into SFIX’s Margins & Expenses
In the fiscal fourth quarter, this Zacks Rank #3 (Hold) company’s gross profit rose 4.2% year over year to $141.4 million, while gross margin held steady at 43.6%. Stitch Fix said inventory management helped offset higher transportation costs and investments in new merchandise categories.
Selling, general and administrative expenses declined to $145.7 million from $146.9 million a year earlier. Advertising represented 9.9% of revenues. The operating loss narrowed to $4.4 million from $11.2 million.
Adjusted EBITDA increased to $10.8 million from $8.7 million in the prior-year quarter, exceeding the company’s $7-$10 million guidance range. Adjusted EBITDA margin improved to 3.3% from 2.8%. Management attributed the guidance beat largely to lower fixed operating expenses.
SFIX’s Financial Snapshot
Stitch Fix ended fiscal 2026 with $220.9 million in cash, cash equivalents and investments, and no debt. The company generated $9.1 million in operating cash flow and $4.4 million in free cash flow during the fourth quarter.
SFIX repurchased 2.7 million shares for $11.3 million in the fourth quarter. For fiscal 2026, it bought back 7.2 million shares for $26.4 million, leaving $93.6 million under the existing authorization.
SFIX Caps Fiscal 2026 With Better Profitability
Full-year net revenues increased 6.4% to $1.35 billion, marking the company's first full year of revenue growth since fiscal 2021. Gross margin was 43.7%, down 70 basis points year over year.
Adjusted EBITDA increased to $53.4 million from $49.1 million, while adjusted EBITDA margin edged up to 4% from 3.9%. The full-year net loss narrowed to $12.6 million from $28.8 million, and free cash flow increased to $19.8 million from $9.3 million.
Stitch Fix’s FY’27 Guidance
For the first quarter of fiscal 2027, management expects revenues of $323-$328 million, implying a year-over-year decline of 5.6% to 4.1%. Adjusted EBITDA is projected at $3-$6 million.
The first-quarter outlook reflects two temporary factors affecting Fix volume. Some shipments were moved from the first quarter of fiscal 2027 into the fourth quarter of fiscal 2026. An unintended August change to the post-checkout offer flow also limited the number of clients eligible to request another Fix. Management said the issue has been corrected and will not affect results beyond the first quarter.
For fiscal 2027, Stitch Fix expects revenues to be in the range of $1.31-$1.36 billion, representing a year-over-year change ranging from a 2.8% decline to 0.9% growth. Adjusted EBITDA is forecast at $27-$42 million compared with $53.4 million in fiscal 2026. Management expects gross margin of 43-44% and positive free cash flow for the year. The outlook reflects a lower active-client starting point, a more challenging consumer environment and planned growth investments.
SFIX Stock Past Three-Month Performance
Image Source: Zacks Investment Research
SFIX stock has lost 34.4% over the past three months compared with the industry’s 12.8% decline.
Stocks to Consider
Genesco Inc. (GCO - Free Report) is a Nashville-based specialty retailer and branded company. It sells footwear and accessories through retail stores. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Genesco’s current fiscal-year earnings indicates growth of 62.1% from the year-ago actuals. GCO delivered a trailing four-quarter average earnings surprise of 11.2%.
Designer Brands Inc. (DBI - Free Report) designs, produces and retails footwear and accessories. It offers shoes, boots, sandals, sneakers, socks, handbags and accessories. It currently carries a Zacks Rank #2 (Buy).
The Zacks Consensus Estimate for Designer Brands’ current fiscal-year earnings and sales suggests growth of 225% and 0.6%, respectively, from the year-ago actuals. DBI delivered a trailing four-quarter average earnings surprise of 108.1%.
FIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company also carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 89.5% and 19.7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.