Stitch Fix Shares Rise 8.4% After Beating Q3 Earnings Estimates

Stitch Fix shares rose 8.4% in pre-market trading after the company reported Q3 losses of six cents per share, beating the analyst consensus estimate of losses of 11 cents per share. Quarterly revenue came in at $325.02 million, beating the $314.44 million consensus estimate. Other stocks moving in pre-market trading include Catheter Precision, INNEOVA Holdings, FST Corp, and Vaxart.

Stitch Fix (SFIX) shares rose 8.4% in pre-market trading following the company's Q3 2025 earnings report. The personalized clothing company reported a non-GAAP loss of $0.06 per share, which exceeded analyst expectations of a $0.11 loss per share. Quarterly revenue came in at $325.02 million, surpassing the $314.44 million consensus estimate [1].

The company's earnings beat came despite a flat year-on-year revenue at $325 million. The non-GAAP loss of $0.06 per share was 48.5% above analysts' consensus estimates. The company also provided a revenue guidance of $300.5 million for the next quarter, which was 4.3% above what analysts were expecting [1].

CEO Matt Baer attributed the quarter's return to revenue growth to larger Fix shipments, stronger merchandise assortments, and higher average order values. The company also saw continued momentum in its Freestyle channel and reported improvements in client retention and new client spending. Baer noted that larger Fix shipments have directly contributed to average order value (AOV) growth and are now being tested with new clients as well [1].

The company's Q3 2025 results reflect its ongoing transformation strategy, particularly efforts to enhance client engagement and expand product offerings. Despite the company's strong performance, management remained cautious about the macroeconomic backdrop and highlighted efforts to manage inventory efficiently and navigate ongoing pressures on consumer discretionary spending [1].

Looking ahead, Stitch Fix's revenue guidance reflects confidence in the sustainability of recent client engagement strategies and assortment enhancements. The company expects client-centric service enhancements, product variety, and proactive risk mitigation to drive revenue and margin performance, while acknowledging persistent macroeconomic and tariff-related uncertainties [1].

Stitch Fix currently trades at a forward EV-to-EBITDA ratio of 13.4×. The company's stock performance is expected to depend on management's commentary on the earnings call and future earnings expectations. Investors should monitor new client acquisition and recurring shipments, product assortment expansion, and the company's ability to offset potential tariff and macroeconomic pressures [1].

References:
[1] https://finance.yahoo.com/news/sfix-q3-fy25-earnings-call-162058128.html