Can AI fix Stitch Fix?

The clothing subscription service posted its first quarter of sales growth in three years — now it’s doubling down on AI.

Claire Yubin Oh

8/15/25 5:49AM

Stitch Fix, the online personal styling service that sends handpicked outfits to your door, has had a rough few years.

Founded in 2011, the company’s relatively narrow appeal — to those who didn’t like clothes shopping and didn’t want to choose what they wear — widened massively during the pandemic, as shops shuttered and fashion went online. But as quickly as the hype came, it disappeared, with the SFIX’s stock dropping more than 90% between January 2021 and the summer of 2022 as customers ditched the platform for rival subscriptions, or just went back to shopping in real life again.

There are some positive signs, however, as the company posted its first top-line growth in three years, with net revenues climbing 0.7% year over year in its latest quarter. Unfortunately, its key active user figure is still dropping: falling from a pandemic-era peak of 4.3 million users, the company now counts a threadbare 2.4 million as of the end of May.

Stitch fix active user chart — Sherwood News

Now the company — which makes money by charging a $20 styling fee for all “fixes” alongside the clothes themselves — is hoping AI can help drive growth.

This week the company announced a new AI “Style Assistant” for clients, as well as new AI-powered visual tools to help you see what you might look like wearing that new scarf, sweater, or T-shirt.

Will millions of people rush out to ask an AI’s opinion of how they look in their new clothes? Considering that many already use AI as a therapist, a boyfriend/girlfriend, or a career counselor, it doesn’t feel like much of a stretch to think they’d also ask it for fashion advice.

The problem SFIX might run into is: what if ChatGPT or DeepSeek or Claude can also do this — will people open a separate AI app just for fashion? Stitch Fix’s new boss, Matt Baer, who was tasked with fixing Stitch Fix when he became CEO in June 2023, is betting the answer is yes.

Max Knoblauch10/24/25

Premium seats help push airlines higher following third-quarter results

Shares of American Airlines are climbing toward the carrier’s best trading day since August 12, when ultra-budget rival Spirit issued its initial warning about its ability to survive. American’s shares are up more than 7% on Friday afternoon.

Investors’ optimism comes a day after American posted a better-than-expected full-year earnings forecast. In a call with investors, American said that it’s ramping up its premium cabin offerings.

“Our ability to grow capacity in premium markets will be further supported as we take delivery of new aircraft and reconfigure our existing fleet. These efforts will allow us to grow our premium seats at nearly two times the rate of main cabin seats,” CEO Robert Isom said. American CFO Devin May said that nose-to-tail retrofits of certain wide-body jets will bump the number of premium seats available on those planes by 25%.

Extra legroom has been a boon for major carriers, particularly this quarter. Delta Air Lines said its premium product revenue grew 9% in Q3, compared to a 4% drop in economy seat revenue. Similarly, United Airlines said its premium revenue grew 6%, outpacing economy. Shares of both airlines were up more than 3% on Friday.

Carriers with less exposure to first- and business-class tickets like Southwest Airlines and JetBlue didn’t see the same amount of momentum on the day.