Stitch Fix Stock Is Rallying Wednesday: What's Going On?

Stitch Fix Inc SFIX shares are trading higher Wednesday after the company reported better-than-expected financial results for the first quarter and issued strong guidance.

What Happened: Stitch Fix reported fiscal first-quarter revenue of $318.8 million, beating analyst estimates of $306.93 million. The company reported a quarterly loss of 5 cents per share, beating estimates for a loss of 13 cents per share, according to Benzinga Pro.

Active clients declined 3% quarter-over-quarter to 2.43 million. Net revenue per client increased 4.9% year-over-year to $531. Net cash from operations was $14.3 million and free cash flow was $9.9 million in the quarter.

Stitch Fix ended the quarter with $253.3 million in cash, cash equivalents and investments.

“Our clients are responding to the newness we have brought to our assortment as well as the improvements we’ve made to our client experience. This progress is a testament to the Stitch Fix team’s ongoing execution of our transformation strategy, and we continue to expect to return to revenue growth by the end of FY26,” said Matt Baer, CEO of Stitch Fix.

Outlook: Stitch Fix sees fiscal second-quarter revenue in the range of $290 million to $300 million versus estimates of $283.53 million. The company expects full-year 2025 revenue to be in the range of $1.14 billion to $1.18 billion versus estimates of $1.14 billion.

Following the print, Telsey Advisory Group analyst Dana Telsey maintained Stitch Fix with a Market Perform rating and raised the price target from $4 to $6.

SFIX Price Action: Stitch Fix shares were up 26.3% at $5.80 at the time of publication, according to Benzinga Pro.

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