Stitch Fix (NASDAQ:SFIX) Announces Quarterly Earnings Results

Stitch Fix (NASDAQ:SFIX) announced its quarterly earnings results on Wednesday. The company reported ($0.01) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.06) by $0.05, FiscalAI reports. The company had revenue of $340.28 million during the quarter, compared to analysts’ expectations of $333.51 million. Stitch Fix had a negative return on equity of 12.23% and a negative net margin of 1.89%.The business’s quarterly revenue was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned ($0.06) earnings per share.

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

• Revenue rose 4.7% to $340.3 million, marking Stitch Fix’s fifth straight quarter of year-over-year growth and coming in above expectations.
• Active clients reached 2.3 million, up 21,000 sequentially, while retention improved for a seventh straight quarter and reached the highest level in four years.
• RPAC hit a record $578 as larger Fixes, higher items per Fix, and assortment improvements continued to lift client spend and engagement.
• Profitability and cash generation remained solid, with gross margin at 43.7%, contribution margin above 30% for the ninth consecutive quarter, $13.2 million in adjusted EBITDA, and $6.5 million in free cash flow.
• The company raised full-year FY2026 revenue and adjusted EBITDA guidance, citing resilient existing-client demand, but also said Q4 active clients are expected to decline slightly sequentially due to seasonality and a tougher consumer backdrop.

Stitch Fix Trading Down 0.6%

SFIX opened at $3.60 on Thursday. The business has a 50 day moving average of $3.47 and a 200-day moving average of $4.06. The stock has a market capitalization of $491.48 million, a price-to-earnings ratio of -27.69 and a beta of 2.31. Stitch Fix has a 1-year low of $2.95 and a 1-year high of $5.94.

Insider Buying and Selling at Stitch Fix

In related news, CFO David Aufderhaar sold 65,709 shares of the company’s stock in a transaction on Tuesday, April 7th. The shares were sold at an average price of $3.09, for a total transaction of $203,040.81. Following the completion of the transaction, the chief financial officer directly owned 1,178,037 shares in the company, valued at $3,640,134.33. This represents a 5.28% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Casey O’connor sold 60,000 shares of the firm’s stock in a transaction on Friday, April 10th. The stock was sold at an average price of $3.08, for a total transaction of $184,800.00. Following the completion of the sale, the insider owned 480,334 shares in the company, valued at $1,479,428.72. This represents a 11.10% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.09% of the stock is owned by corporate insiders.

Institutional Trading of Stitch Fix

Hedge funds have recently modified their holdings of the company. Creative Planning acquired a new stake in shares of Stitch Fix during the 2nd quarter worth approximately $46,000. CIBC Bancorp USA Inc. acquired a new stake in Stitch Fix during the third quarter worth $50,000. Royal Bank of Canada raised its stake in shares of Stitch Fix by 324.6% in the 4th quarter. Royal Bank of Canada now owns 10,998 shares of the company’s stock valued at $57,000 after buying an additional 8,408 shares in the last quarter. Blair William & Co. IL bought a new position in shares of Stitch Fix during the 4th quarter worth about $66,000. Finally, Inceptionr LLC acquired a new stake in shares of Stitch Fix during the 3rd quarter valued at about $72,000. Institutional investors own 71.04% of the company’s stock.

Wall Street Analyst Weigh In

Several equities research analysts recently weighed in on the company. William Blair restated a “mixed” rating on shares of Stitch Fix in a report on Friday, March 6th. Northland Securities began coverage on shares of Stitch Fix in a research report on Thursday, May 28th. They issued an “outperform” rating and a $5.00 price target on the stock. Weiss Ratings restated a “sell (d-)” rating on shares of Stitch Fix in a research note on Tuesday, April 21st. Telsey Advisory Group decreased their price objective on shares of Stitch Fix from $6.00 to $5.00 and set a “market perform” rating for the company in a report on Thursday, March 12th. Finally, Wall Street Zen lowered shares of Stitch Fix from a “buy” rating to a “hold” rating in a research note on Saturday, May 2nd. One equities research analyst has rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Hold” and a consensus target price of $5.00.

Trending Headlines about Stitch Fix

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

• Positive Sentiment: Stitch Fix reported fiscal Q3 EPS of -$0.01, beating the consensus estimate of -$0.06, while revenue of $340.3 million topped expectations of $333.5 million. Article Title
• Positive Sentiment: Management said the company delivered its fifth consecutive quarter of year-over-year revenue growth on an adjusted basis, and that both revenue and adjusted EBITDA exceeded internal expectations, suggesting improving execution. Article Title
• Positive Sentiment: CEO Matt Baer said Stitch Fix’s revamp of personal shopping features helped reverse client declines, with quarter-over-quarter active client growth and improved revenue trends, which supports the market’s optimism about the turnaround. Article Title
• Neutral Sentiment: Stitch Fix updated fourth-quarter guidance for revenue of $322 million to $327 million, roughly around Wall Street’s expectation of $323.7 million, which suggests the company is not dramatically raising near-term expectations.
• Neutral Sentiment: Multiple earnings transcripts and recap articles focused on the same results, reinforcing the core message that the quarter was better than feared rather than introducing new catalysts. Article Title
• Negative Sentiment: Despite the beat, Stitch Fix remains unprofitable on a GAAP basis and issued only modest forward guidance, so investors may still be cautious about how quickly the turnaround can translate into sustained earnings power.

Stitch Fix Company Profile

Stitch Fix, Inc, headquartered in San Francisco, California, is a leading online personal styling service that blends data science with human expertise to deliver curated clothing and accessory selections. Founded in 2011 by Katrina Lake, the company pioneered a subscription-based model in which customers receive periodic “Fixes” tailored to their personal style, size and budget. Each shipment arrives with several handpicked items along with styling notes, allowing clients to review, purchase and return pieces at their convenience.

Clients begin by completing an online style profile that captures their measurements, design preferences and lifestyle needs.