Online apparel retailer Stitch Fix Q4 revenue edges past estimates
Overview
Stitch Fix fiscal Q4 rev falls 2.6% YoY, beats analyst expectations, per LSEG data
Net revenue per active client rises 3% YoY to $549
Adjusted EBITDA of $8.7 mln beats analyst estimates, per LSEG data
Outlook
Company expects Q1 2026 net revenue of $333 mln to $338 mln
Stitch Fix sees FY 2026 net revenue between $1.28 bln and $1.33 bln
Company forecasts FY 2026 gross margin of 43% to 44%
Stitch Fix anticipates FY 2026 advertising expense at 9% to 10% of revenue
Result Drivers
TRANSFORMATION STRATEGY - CEO attributes positive momentum to successful execution of transformation strategy, including improvements to client experience and assortment
ADJUSTED REVENUE GROWTH - Adjusted net revenue increased 4.4% YoY, reflecting impact of extra week in fiscal 2024
CLIENT SPENDING - Net revenue per active client grew 3.0% YoY to $549, indicating increased spending per client
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Beat | $311.20 mln | $309.30 mln (4 Analysts) |
Q4 EPS | Beat | -$0.07 | -$0.1 (4 Analysts) |
Q4 Net Income | Beat | -$8.60 mln | -$13.70 mln (4 Analysts) |
Q4 Adjusted EBITDA | Beat | $8.70 mln | $6.46 mln (4 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 $5.25, about 4% below its September 23 closing price of $5.46
Press Release:
