Stitch Fix SFIX Falls 5.27% in Pre-Market Despite Zacks Rank Upgrade to Buy

Stitch Fix (SFIX) fell 5.27% in pre-market trading on January 6, 2026, despite a recent upgrade to a Zacks Rank #2 (Buy) rating. The rating reflects improved earnings estimates, a key driver of stock price momentum according to the Zacks system, which tracks revisions to sell-side analysts’ forecasts. Analysts have raised their earnings estimates for the company by 23.8% over the past three months, signaling optimism about its near-term financial trajectory.

Separately, Stitch Fix reported a 5.3% year-over-year increase in Revenue per Active Client (RPAC) and a near-10% rise in Average Order Value (AOV) for the fiscal first quarter of 2026. Management attributed these gains to enhanced client engagement and a broader product mix, including activewear and accessories. However, the recent pre-market selloff suggests investors may be factoring in challenges such as inflationary pressures and evolving consumer spending habits, even as the company emphasizes long-term growth through innovation and personalization.

The Zacks Rank system, which categorizes stocks based on earnings estimate trends, positions Stitch Fix in the top 20% of its coverage universe. While the upgrade historically correlates with favorable price movements, the current decline indicates market skepticism about sustaining momentum in a competitive retail landscape. Investors are likely weighing the balance between improving fundamentals and broader economic uncertainties ahead of the company’s full fiscal 2026 outlook.