Stitch Fix 2026 Q1 Earnings Revenue Surpasses Expectations Despite Wider Net Loss

Stitch Fix (SFIX) reported fiscal 2026 Q1 earnings on Dec 5, 2025, with revenue rising 7.3% to $342.13 million, beating expectations by $5.44 million. The company maintained stable GAAP EPS at $-0.05 but saw a widened net loss of $-6.36 million. Full-year guidance was raised to $1.32–$1.35 billion, reflecting optimism about AI-driven growth and client retention strategies.

Revenue

Stitch Fix reported a total revenue of $342.13 million for Q1 2026, with both net revenue and total revenue figures aligning at this amount. The 7.3% year-over-year increase reflects strong client engagement and higher average order values, though active client counts declined slightly.

Earnings/Net Income

The company maintained a stable GAAP EPS of $-0.05 in Q1 2026, matching the prior year. However, the net loss expanded to $-6.36 million, a 1.7% increase from $-6.26 million in Q1 2025. While the EPS remained consistent, the widening net loss signals ongoing profitability challenges despite revenue growth.

Post-Earnings Price Action Review

The strategy of buying SFIX when revenues miss and holding for 30 days resulted in a -3.70% return, significantly underperforming the benchmark return of 75.02%. The strategy had a maximum drawdown of 0.00%, indicating no losses during the backtest period, but it also had a Sharpe ratio of -0.02 and a volatility of 81.77%, suggesting high risk and moderate returns.

Post-earnings, the stock surged 16.36% in a single trading day, with gains extending to 20.47% for the week and 23.37% month-to-date. However, historical trading strategies tied to revenue misses have shown mixed performance, highlighting the stock’s volatility.

CEO Commentary

CEO Matt Baer emphasized Q1’s 7.3% revenue growth and adjusted EBITDA of $13.4 million, driven by enhanced client engagement and AI integration. He highlighted plans to expand into nonapparel categories, optimize inventory via AI, and maintain disciplined reinvestment for long-term profitability.

Guidance

Stitch Fix raised FY 2026 revenue guidance to $1.32–$1.35 billion and adjusted EBITDA to $38–$48 million. Q2 revenue is projected at $335–$340 million, with CFO David Aufderhaar noting cautious optimism amid inflationary pressures and tougher AOV comparisons in the back half of 2026.

Additional News

1. Shareholder Sale: Lake Katrina Rev Trust filed to sell 303,450 shares of SFIX via a prearranged trading plan, signaling potential liquidity from insider holdings.

2. AI-Driven Growth: The CEO highlighted generative AI’s role in enhancing client personalization, with tools like Stitch Fix Vision and AI style assistants driving innovation.

3. Stock Volatility: Shares surged 9.9% post-earnings amid raised guidance, though analysts remain cautious about the company’s ability to sustain profitability despite improved EBITDA.

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