Stitch Fix Reports Q4 2026 Earnings with Revenue Growth but Faces Challenges
Stitch Fix (SFIX) reported fourth-quarter revenue of $324.4 million, a 4.2% year-over-year increase driven by higher average order value and strong performance in activewear and athleisure categories. For fiscal 2026, the company achieved total revenue of $1.35 billion, up 6.4%, with adjusted EBITDA reaching $53.4 million for a margin of 4.0%. Despite these gains, Stitch Fix ended the year with 2.277 million active clients—a slight decline due to higher client acquisition costs—and reported a net loss of $12.6 million ($0.09 per share). The company generated free cash flow of $19.8 million and repurchased 7.2 million shares for $26.4 million during the year. Looking ahead, Stitch Fix provided cautious guidance for fiscal 2027 with revenue expected between $1.31 billion to $1.36 billion—a slowdown attributed to a challenging consumer environment—and adjusted EBITDA projected at $27 million to $42 million. The company also warned of continued pressure from rising client acquisition costs, macroeconomic factors like inflation and high mortgage rates, as well as technical issues affecting first-quarter performance.
Topics: cash_flow ebitda financial_performance revenue_growth