Stitch Fix full year revenue rises 6.4 percent despite client decline

US-based online personal styling service Stitch Fix, Inc. (Stitch Fix) has reported its financial results for the fourth quarter and full fiscal year 2026 ended August 1, 2026.

Full-year net revenue reached 1.35 billion dollars, representing an increase of 6.4 percent year-over-year (YoY).

“Fiscal 2026 was a transformative year for Stitch Fix. We closed the year as a significantly healthier business, with a strengthened operating foundation, along with a reimagined client experience and more compelling assortment,” said Stitch Fix chief executive officer Matt Baer.

Full year performance

Gross profit for the fiscal year increased by 4.5 percent YoY to 588.50 million dollars, with gross margin contracting by 70 basis points to 43.7 percent.

Net loss for the full year stood at 12.60 million dollars, reflecting a net loss margin of 0.9 percent, while diluted loss per share was 0.09 dollars. Adjusted EBITDA reached 53.40 million dollars, delivering an adjusted EBITDA margin of 4 percent.

“Full-year revenue grew 6.4 % year-over-year and we continued to gain share in the U.S. apparel, footwear and accessories market. We remain confident in our transformation strategy and ability to advance our efforts to deliver the most personalized and client-centric shopping experience as we navigate a challenging consumer environment,” Baer added.

Fourth quarter performance

In the fourth quarter, net revenue rose 4.2 percent YoY to 324.40 million dollars. Active clients totaled 2.28 million, representing a decline of 1.4 percent quarter-over-quarter and 1.4 percent YoY. Net revenue per active client increased 7.8 percent YoY to 592 dollars.

Gross margin remained flat YoY at 43.6 percent. Net loss for the quarter was 2.10 million dollars, resulting in a net loss margin of 0.6 percent and a diluted loss per share of 0.02 dollars.

Adjusted EBITDA for the fourth quarter stood at 10.80 million dollars, equivalent to an adjusted EBITDA margin of 3.3 percent.

During the quarter, the company repurchased 2.70 million shares of Class A common stock for 11.30 million dollars.

Fiscal 2027 outlook

Looking ahead to the first quarter of fiscal 2027 ending October 31, 2026, net revenue is expected to range between 323 million dollars and 328 million dollars, representing a YoY decline of 5.6 percent to 4.1 percent.

Adjusted EBITDA for the first quarter is projected to be between three million dollars and six million dollars, with an adjusted EBITDA margin between 0.9 percent and 1.8 percent.

For the full fiscal year 2027, Stitch Fix expects net revenue of between 1.31 billion dollars and 1.36 billion dollars, representing a YoY performance of negative 2.8 percent to positive 0.9 percent.

Full-year adjusted EBITDA is forecasted between 27 million dollars and 42 million dollars, representing a margin of 2.1 percent to 3.1 percent, reflecting investments in advertising and technology, including artificial intelligence. Full-year gross margin is expected to land between 43 percent and 44 percent, with the company anticipating positive free cash flow generation.