Shares of Stitch Fix (SFIX) fell sharply after the personal-styling company reported fourth-quarter earnings that beat on profit but delivered a disappointing profit outlook for fiscal 2027.
Stitch Fix reported an adjusted loss per share of minus-2 cents for the quarter ended Feb. 1, 2026, beating analyst expectations of a minus-6-cent loss by 4 cents, according to data compiled by Investing.com. Revenue came in at $324.4 million, up 4.2% from a year earlier, slightly missing the $325.6 million consensus estimate. It was the sixth consecutive quarter of positive year-over-year revenue comparisons.
Full-year revenue for fiscal 2026 totalled $1.35 billion, up 6.4%. Full-year adjusted EBITDA was $51.9 million on a 4% margin, and net loss narrowed to $12.6 million, or 9 cents per share.
One of the brighter elements of the quarter was revenue per active client (RPAC), which rose 7.8% year-over-year to $592, marking a record for the third straight quarter. Average order value grew 4.9%, and items per Fix along with average unit retail posted eight consecutive quarters of growth. Gross margin held flat at 43.6% for the quarter.
Active clients at the end of the quarter stood at 2.277 million, down 1.4% from a year earlier. Activewear and athleisure grew 21% year-over-year, footwear rose 14%, and men’s business posted double-digit growth for a fifth consecutive quarter.
The company added more than 80 new brands since the start of fiscal 2026, including Rhone, Birkenstock, Outdoor Voices, Malbon Golf, Farm Rio, Baggu, Merrell, Jordan Brand, Nike Golf and Mitchell & Ness NFL-licensed apparel. Stitch Fix also said it shared 22 million Vision images with clients and launched a "See it on me" feature allowing shoppers to view outfit ideas on their own likeness.
Circana data showed the broader U.S. apparel, footwear and accessories market grew just 1% for the full year and was roughly flat in the fourth quarter, meaning Stitch Fix outperformed the overall market. Additionally, 20% of new clients said during onboarding they are seeking styling guidance as their bodies change due to GLP-1 weight-loss medications, nearly double the U.S. population penetration rate for such drugs, the company said citing Gallup polling data.
Cash, equivalents and investments totalled $220.9 million with no debt, and the company generated $19.8 million in free cash flow for the full year.
But shares dropped sharply on weaker forward guidance. For fiscal 2027, Stitch Fix expects revenue between $1.31 billion and $1.36 billion, implying a modest decline at the midpoint versus fiscal 2026. Adjusted EBITDA for the year is guided to $27 million to $42 million, well below the $51.9 million posted last year.
The first quarter carry temporary headwinds, including a shift of Fix shipments from Q1 into Q4 and an unintended change to the post-checkout offer flow, both of which have been corrected. First-quarter revenue is guided to $323 million to $328 million with adjusted EBITDA of $3 million to $6 million.
Advertising spending is expected to rise to 10% to 11% of revenue in fiscal 2027 from 9% to 10% in fiscal 2026. CFO David Aufderhaar noted that excluding those additional investments, the EBITDA margin guide would have been more consistent with the prior year's 4% range.
In regular trading, shares fell 5.69% to $2.82, before extending losses in after-hours trading to around $2.30. The stock sits below its 52-week low of $2.76 and is down 46% year-to-date.
