Stitch Fix sinks as Wall Street digests Q4 results

Shares of Stitch Fix were down 9% in premarket trading Thursday as Wall Street reacted to the personal styling platform’s Q4 results after the bell Wednesday.

The company reported a quarterly loss, with earnings per share coming in at a $0.07 loss, narrower than the $0.10 loss analysts polled by FactSet expected. Revenue also cleared the consensus bar, hitting $311.2 million versus the $305.8 million forecast.

The company’s guidance landed ahead of the Street’s as well. Stitch Fix foresees full-year losses per share of $0.23 and revenue of $1.28 billion to $1.33 billion, while the current-quarter outlook of $333 million to $338 million in sales handily tops consensus estimates of $315.6 million.

“Fiscal 2025 was a milestone year for Stitch Fix. We finished the year with our second consecutive quarter of year-over-year revenue growth on an adjusted basis, and once again gained share in the US apparel market,” CEO Matt Baer said. Net revenue per active client also ticked up 3% to $549.

But the relatively upbeat numbers weren’t enough to quiet investor jitters.

The total number of customers continued to decline. As Sherwood News’ Claire Yubin Oh wrote last month, the company’s “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.” That number continued to drop in the latest quarter, falling to 2.31 million.

Mizuho analysts stuck with their “underperform” (sell) rating and $3 price target on the stock, pointing to weak EBITDA margins and warning that cost pressures are still a drag even as management leans into its turnaround plan.

Before the earnings dip, shares of Stitch Fix had been up nearly 30% year to date.