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Stitch Fix Stock Rallies After Q4 Earnings: Here's Why

Stitch Fix, Inc.  (NASDAQ:SFIX) shares climbed after the company reported better-than-expected fourth-quarter results after Wednesday's closing bell. The company also issued fiscal 2026 guidance above estimates.

Here's a look at the key figures from the quarter. 

The Details: Stitch Fix reported quarterly losses of seven cents per share, which beat the consensus estimate for losses of 10 cents.

Quarterly revenue came in at $311.22 million, which beat the Street estimate of $305.83 million.

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Stitch Fix reported the following fourth quarter highlights:

  • Net revenue of $311.2 million, a decrease of 2.6% year-over-year. Adjusting for the impact of the extra week in the fourth quarter of fiscal 2024 of $21.6 million, net revenue increased 4.4% year-over-year.
  • Active clients of 2.309 million, a decrease of 1.9% quarter-over-quarter and a decrease of 7.9% year-over-year.
  • Net revenue per active client (RPAC) of $549, an increase of 3% year-over-year.
  • Gross margin of 43.6%, a decrease of 100 basis points year-over-year, driven primarily by transportation deleverage and lower product margins.

“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 U.S. apparel market,” said Matt Baer, CEO of Stitch Fix.

Outlook: Stitch Fix sees first-quarter revenue in a range of $333 million to $338 million, versus the $293.12 million analyst estimate.

The company expects fiscal 2026 revenue in a range of $1.28 billion to $1.33 billion, versus the $1.26 billion estimate.

SFIX Stock Price: According to data from Benzinga Pro, Stitch Fix stock was up 11.35% at $6.28 in Wednesday's extended trading. 

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