Online apparel retailer Stitch Fix Q1 revenue beats, driven by successful transformation strategy
Stitch Fix's fiscal Q1 revenue grew 7.3% year-over-year, beating analyst expectations. The company reported a net loss of $6.4 million but exceeded consensus on adjusted EBITDA. The growth is attributed to a successful transformation strategy and the use of GenAI technology. For FY 2026, Stitch Fix forecasts net revenue of $1.32 billion to $1.35 billion and a gross margin between 43% and 44%. Analysts have a 'hold' rating on the stock, with a median 12-month price target of $6.00.
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Overview
- Stitch Fix fiscal Q1 revenue grows 7.3% yr/yr, beating analyst expectations
- Adjusted EBITDA for fiscal Q1 beats consensus, indicating operational efficiency
- Company reports net loss of $6.4 mln for fiscal Q1
Outlook
- Company expects Q2 2026 net revenue between $335 mln and $340 mln
- Stitch Fix forecasts FY 2026 net revenue of $1.32 bln to $1.35 bln
- Company expects FY 2026 gross margin between 43% and 44%
Result Drivers
- TRANSFORMATION STRATEGY - CEO Matt Baer attributes revenue growth to successful execution of transformation strategy
- GENAI TECHNOLOGY - Co leverages GenAI technology to enhance client-centric shopping experience
- PERSONALIZED EXPERIENCE - Co emphasizes personalized shopping experience as a key driver of client engagement
Key Details
Metric Beat/Mis Actual Consensu
s s
Estimate
Q1 Beat $342.10 $336.71
Revenue mln mln (4
Analysts
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Q1 EPS -$0.05
Q1 Net -$6.40
Income mln
Q1 Beat $13.40 $10.23
Adjusted mln mln (4
EBITDA Analysts
)
Analyst Coverage
- The current average analyst rating on the shares is “hold” and the breakdown of recommendations is 1 “strong buy” or “buy”, 3 “hold” and 1 “sell” or “strong sell”
- The average consensus recommendation for the online services peer group is “buy.”
- Wall Street’s median 12-month price target for Stitch Fix Inc is $6.00, about 31.6% above its December 3 closing price of $4.56
Press Release: For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact . (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
