Stitch Fix (NASDAQ:SFIX) Releases Earnings Results, Beats Expectations By $0.04 EPS

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

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 SFIX opened at $2.21 on Friday. Stitch Fix has a fifty-two week low of $2.10 and a fifty-two week high of $5.74. The firm’s 50-day simple moving average is $3.41 and its two-hundred day simple moving average is $3.52. The stock has a market cap of $294.88 million, a PE ratio of -22.10 and a beta of 2.27.

Analyst Ratings Changes

SFIX has been the subject of several research analyst reports. Weiss Ratings upgraded shares of Stitch Fix from a “sell (e+)” rating to a “sell (d-)” rating in a report on Monday, July 13th. UBS Group decreased their target price on Stitch Fix from $4.00 to $3.50 and set a “neutral” rating for the company in a research report on Thursday. Northland Securities set a $4.00 target price on Stitch Fix in a research note on Thursday. Telsey Advisory Group dropped their price target on Stitch Fix from $5.00 to $3.00 and set a “market perform” rating on the stock in a research report on Thursday. Finally, Sanford C. Bernstein reaffirmed a “market perform” rating and issued a $4.00 price target on shares of Stitch Fix in a research note on Thursday. One analyst has rated the stock with a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus price target of $3.62.

Key Stitch Fix News

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

• Positive Sentiment: Stitch Fix reported a narrower-than-expected quarterly loss of $0.02 per share, compared with the consensus estimate of a $0.06 loss. Revenue increased 4.2% year over year to $324.4 million, while record revenue per active client and assortment expansion offered evidence of progress in the business. Stitch Fix Announces Fourth Quarter and Full Fiscal Year 2026 Financial Results
• Positive Sentiment: Management said its AI-powered virtual try-on feature is generating a “significant lift” in spending among participating customers, potentially supporting future engagement and monetization. Stitch Fix AI Try-Ons Drive Surge in Shopper Spend
• Positive Sentiment: The company’s quarterly loss was narrower than a year earlier, improving from $0.07 per share to $0.02 per share, indicating continued cost and operating improvements. Stitch Fix Posts Narrower Q4 2026 Loss
• Neutral Sentiment: Reported short interest was listed at zero shares as of September 24, producing a 0.0-day short-interest ratio. This suggests limited identifiable short-selling pressure, although the unusual figure may reflect a reporting-data issue rather than a fundamental catalyst.
• Negative Sentiment: Fiscal 2027 revenue guidance of $1.3 billion to $1.4 billion was below the roughly $1.4 billion consensus, while first-quarter guidance of $323 million to $328 million was well below the $355.5 million analyst estimate. Management cited soft consumer spending and expected demand deterioration. Stitch Fix Sees Soft Consumer Spending Weighing on Fiscal 2027 Sales
• Negative Sentiment: Analysts reacted negatively to the outlook: Telsey cut its price target from $5 to $3 with a market-perform rating, while Bernstein lowered its target to $4. Bernstein Lowers Stitch Fix Price Target
• Negative Sentiment: A Seeking Alpha analyst downgraded SFIX to Sell, citing anticipated revenue declines and adjusted EBITDA margin compression in fiscal 2027. Stitch Fix Downgrade

Insider Activity at Stitch Fix

In other news, insider Anthony Bacos sold 70,011 shares of the business’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $4.42, for a total value of $309,448.62. Following the sale, the insider directly owned 1,051,994 shares of the company’s stock, valued at $4,649,813.48. The trade was a 6.24% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Aufderhaar sold 67,960 shares of Stitch Fix stock in a transaction 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 owned 1,102,369 shares of the company’s stock, valued at $4,177,978.51. The trade was a 5.81% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 487,971 shares of company stock valued at $1,900,517 over the last quarter. Company insiders own 16.09% of the company’s stock.

Stitch Fix Company Profile

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.