Stitch Fix reports 9.4 percent revenue growth in second quarter

The US-based online personal styling service Stitch Fix has announced its financial results for the second quarter of fiscal year 2026, which ended January 31, 2026. The company reported net revenue of 341.30 million dollars, representing an increase of 9.4 percent year-over-year.

The company's chief executive officer, Matt Baer, attributed the performance to enhancements in the client experience and the integration of new artificial intelligence features. Baer noted that these initiatives are driving increased engagement and allowing the company to gain market share in apparel, footwear and accessories.

Despite the rise in revenue, the company experienced a slight contraction in its user base. Active clients totaled 2.288 million, reflecting a decrease of 0.8 percent quarter-over-quarter and a 3.5 percent decline compared to the previous year.

Mixed financial performance across key metrics

The company reported that net revenue per active client rose to 577 dollars, a 7.4 percent increase YoY. Gross margin for the period stood at 43.6 percent, which is a decrease of 90 basis points, while net loss was 2.70 million dollars, resulting in a net loss margin of 0.8 percent and a diluted loss per share of 0.02 dollars.

The adjusted EBITDA reached 15.90 million dollars, maintaining a margin of 4.7 percent.

Outlook for third quarter and full fiscal year 2026

For the third quarter of fiscal year 2026, which ends May 2, 2026, Stitch Fix expects net revenue to fall between 330 million dollars and 335 million dollars. This would represent growth of between 1.5 percent and 3.1 percent. The company projects adjusted EBITDA for the upcoming quarter to be between 7 million dollars and 10 million dollars.

For the full fiscal year 2026, the styling service has updated its guidance to expect net revenue between 1.33 billion dollars and 1.35 billion dollars. This targets an overall annual growth rate of 5 percent to 6.5 percent.

Management confirmed that the company expects to remain free cash flow positive for the duration of the fiscal year. Baer remains focused on maintaining a client-centric approach to navigate the competitive landscape of apparel retail.