Stitch Fix, Inc. announced its financial results for the first quarter of fiscal 2026 showing strong growth and market share gains.
Key highlights include year-over-year revenue growth of 7.3% and increased focus on personalized shopping experience.
Despite a slight decrease in active clients, the company reported positive metrics such as net revenue per active client and gross profit.
Financial Performance
Net revenue increased by 7.3% year-over-year, with gross profit rising to $149.3 million.
Active Clients
2.307 million active clients, with net revenue per active client reaching $559, reflecting a 5.3% increase.
Outlook
The financial outlook for Q2 2026 projects net revenue between $335 million - $340 million and Adjusted EBITDA between $10 million - $13 million.
Fiscal Year 2026 Forecast
Stitch Fix expects net revenue for fiscal year 2026 to range from $1.32 billion to $1.35 billion, with an estimated Adjusted EBITDA between $38 million - $48 million.
Free Cash Flow
The company anticipates being free cash flow positive for the full fiscal year 2026.
- Stitch Fix's transformation strategy is proving successful, positioning them as a preferred retailer for clients' apparel needs.
- The integration of GenAI technology, human Stylists' expertise, and leading brands in their assortment contributes to a client-centric shopping experience.
Stitch Fix's strong start in fiscal 2026 reflects a promising path forward with strategic initiatives bearing fruit. Despite challenges, the company's focus on client satisfaction and technology-driven personalization sets a solid foundation for continued growth.