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

Stitch Fix (NASDAQ:SFIX) announced its quarterly earnings data on Wednesday. The company reported ($0.02) earnings per share for the quarter, topping the consensus estimate 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 business had revenue of $324.42 million for the quarter, compared to analyst estimates of $325.50 million. During the same period in the prior year, the firm posted ($0.07) EPS. The company’s revenue was up 4.2% on a year-over-year basis.

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 Price Performance

Shares of SFIX stock opened at $2.82 on Thursday. Stitch Fix has a 12 month low of $2.76 and a 12 month high of $5.74. The firm has a market capitalization of $376.26 million, a P/E ratio of -35.25 and a beta of 2.27. The company’s fifty day moving average price is $3.44 and its two-hundred day moving average price is $3.53.

Insider Activity

In other Stitch Fix news, insider Anthony Bacos sold 70,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $4.09, for a total transaction of $286,300.00. Following the completion of the sale, the insider owned 951,994 shares in the company, valued at $3,893,655.46. This trade represents a 6.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, 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 the firm’s 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 sale, the chief financial officer owned 1,102,369 shares of the company’s stock, valued at approximately $4,177,978.51. This trade represents 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 90 days. Insiders own 16.09% of the company’s stock.

More Stitch Fix News

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

• Positive Sentiment: Stitch Fix reported a fourth-quarter loss of approximately $0.01–$0.02 per share, better than the $0.06 loss analysts expected and an improvement from a $0.07 loss a year earlier. Stitch Fix Reports Q4 Loss, Misses Revenue Estimates
• Positive Sentiment: Quarterly revenue increased 4.2% year over year to $324.42 million, indicating continued growth and progress under CEO Matt Baer’s business repositioning strategy. Stitch Fix Announces Fourth Quarter and Full Fiscal Year 2026 Financial Results
• Neutral Sentiment: Management characterized fiscal 2026 as a transformative year, citing a stronger operating foundation, a redesigned client experience and an improved product assortment. However, the company remains unprofitable, with a negative net margin and return on equity.
• Negative Sentiment: Fourth-quarter revenue of $324.42 million fell short of the $325.50 million consensus estimate, making the earnings beat less meaningful for investors focused on top-line momentum. Stitch Fix Stock Drops After Q4 Revenue Comes in Below Estimates
• Negative Sentiment: Fiscal first-quarter 2027 revenue guidance of $323 million to $328 million is well below the $355.5 million analyst consensus. Full-year fiscal 2027 revenue guidance of $1.3 billion to $1.4 billion also implies limited upside versus the $1.4 billion consensus, raising concerns about slowing growth.

Analysts Set New Price Targets

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

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.