Stitch Fix 2026 Q1 Earnings Revenue Grows 7.3% Despite Widening Net Loss

Stitch Fix reported Q1 2026 earnings with revenue growth exceeding expectations and raised full-year guidance, though net losses expanded slightly. The company’s stock surged post-earnings, reflecting mixed market reactions to its performance and strategic outlook.

Revenue

Stitch Fix’s total revenue increased by 7.3% year-over-year to $342.13 million in Q1 2026, driven by higher net revenue and client engagement. Total revenue, which includes net revenue, amounted to $342.13 million, reflecting a modest yet consistent expansion in its core business.

Earnings/Net Income

Despite stable EPS of -$0.05, the company’s net loss widened to $6.36 million in Q1 2026, a 1.7% increase from the previous year’s $6.26 million loss. While earnings per share remained flat, the growing net loss highlights ongoing profitability challenges.

Post-Earnings Price Action Review

A strategy of buying SFIX when revenue misses expectations and holding for 30 days underperformed the benchmark by 125.48%, returning -68.37%. With a maximum drawdown of 0% and a Sharpe ratio of -0.58, the approach underscored significant risk, indicating limited upside potential for speculative trades tied to earnings surprises.

CEO Commentary

CEO Matt Baer emphasized progress in client engagement, larger fixes, and a diversified product assortment. He highlighted the integration of generative AI and human stylists to enhance personalization, alongside expansion into non-apparel categories to capture additional wallet share.

Guidance

The company raised its full-year 2026 revenue guidance to $1.32 billion–$1.35 billion and Q2 2026 revenue to $335 million–$340 million, reflecting confidence in sustained growth. Adjusted EBITDA is projected to reach $38 million–$48 million annually.

Additional News

1. Strategic AI Integration: Stitch Fix announced plans to deepen its use of generative AI to enhance personalization, aligning with CEO Matt Baer’s vision for client-centric innovation.

2. Shareholder Sale: Katrina Lake Rev Trust filed to sell 303,450 shares via a prearranged trading plan, signaling potential liquidity shifts for the company.

3. Stock Volatility: Shares surged 9.9% post-earnings, driven by optimism over revenue growth and guidance, though analysts remain cautious about long-term profitability.