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Stitch Fix
(NASDAQ:SFIX)
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Rating:51Neutral
Price Target:
$3.00
▼(-5.36% Downside)
Action:Reiterated
Date:09/29/26
The score is held back primarily by still-negative profitability (despite improving trends) and weak technicals (below key moving averages with negative MACD). Offsetting these are positive cash generation and an encouraging earnings-call backdrop highlighting operational progress and continued positive free-cash-flow expectations, though tempered by softer FY27 guidance and client/acquisition headwinds.
Positive Factors
Revenue growth and market outperformance
Stitch Fix is regaining topline momentum and growing substantially faster than its broader market. Six consecutive quarters of positive revenue comparisons suggest improving execution and customer demand, supporting a stronger base for future scale and operating leverage.
Negative Factors
Active-client contraction
A shrinking active-client base limits the company’s ability to compound revenue, even when revenue per client improves. Continued contraction would make growth more dependent on higher spending per customer and could weaken the network benefits of a larger recurring styling audience.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and market outperformance
Stitch Fix is regaining topline momentum and growing substantially faster than its broader market. Six consecutive quarters of positive revenue comparisons suggest improving execution and customer demand, supporting a stronger base for future scale and operating leverage.
Read all positive factors
Stitch Fix (SFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$371.42M
Dividend YieldN/A
Average Volume (3M)3.58M
Price to Earnings (P/E)―
Beta (1Y)1.62
Revenue Growth6.39%
EPS Growth57.76%
CountryUS
Employees4,240
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.09
Shares Outstanding118,464,066
10 Day Avg. Volume2,798,211
30 Day Avg. Volume3,576,376
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)2.75
Price to Sales (P/S)0.40
P/FCF Ratio27.19
Enterprise Value/Market Cap1.16
Enterprise Value/Revenue0.32
Enterprise Value/Gross Profit0.73
Enterprise Value/Ebitda461.67
Forecast
1Y Price Target
$3.40Price Target Upside7.26% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)-0.15
Revenue Forecast (FY)$1.34B
Stitch Fix Business Overview & Revenue Model
Company Description
Stitch Fix, Inc. functions as an online retailer, providing a diverse selection of clothing, footwear, and accessories throughout the United States. Its product offerings, available via its website and mobile application, encompass items like deni...
How the Company Makes Money
Stitch Fix primarily makes money by selling apparel and accessories directly to clients through its e-commerce and styling model. Its main revenue stream is net revenue from merchandise sales: clients receive a curated shipment (a “Fix”) or shop t...
Stitch Fix Earnings Call Summary
Earnings Call Date:Sep 23, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Dec 08, 2026
Earnings Call Sentiment Positive
The call was predominantly positive: fiscal 2026 delivered 6.4% revenue growth, six consecutive quarters of positive revenue comps, record revenue per active client, improved margins, positive free cash flow and a strong balance sheet. Management also highlighted progress in retention, assortment expansion, AI and Vision. The primary challenges were declining active clients, higher acquisition costs, a difficult consumer environment and more modest fiscal 2027 revenue and EBITDA guidance, with Q1 additionally affected by temporary fix-volume issues. Management remained confident in returning to active client growth and sustaining long-term profitable growth.Positive Updates
Full-Year Revenue Growth and Market Outperformance
Fiscal 2026 revenue grew 6.4% year-over-year to $1.35 billion, compared with 1% growth for the total U.S. apparel, footwear and accessories market. Q4 revenue increased 4.2% year-over-year to $324.4 million, marking the sixth consecutive quarter of positive revenue comps.
Negative Updates
Active Client Decline in Q4
Active clients declined 1.4% year-over-year and sequentially in Q4 to 2.277 million. Management said active clients were softer than expected, in addition to seasonality.
Read all updates
Q4-2026 Updates
Positive
Negative
Full-Year Revenue Growth and Market Outperformance
Fiscal 2026 revenue grew 6.4% year-over-year to $1.35 billion, compared with 1% growth for the total U.S. apparel, footwear and accessories market. Q4 revenue increased 4.2% year-over-year to $324.4 million, marking the sixth consecutive quarter of positive revenue comps.
Read all positive updates
Company Guidance
For FY '27, Stitch Fix expects total revenue to be between $1.31 billion and $1.36 billion, total adjusted EBITDA to be between $27 million and $42 million, full year gross margin to remain between 43% to 44%, and to generate stronger positive free cash flow for FY '27 compared to last year; for Q1, it expects total revenue to be between $323 million and $328 million and adjusted EBITDA to be between $3 million and $6 million, with lower expected fix volume from two temporary factors affecting only Q1. The company is probably going to be spending a little bit more in the 10% to 11% range on marketing versus the 9% to 10% range in FY '26, with Q1 and Q3 tending to be stronger acquisition quarters, and if excluding additional advertising and incremental AI investments, the EBITDA margin guide would have been much more consistent with last year's margin at the 4% range.Stitch Fix Financial Statement Overview
Summary
Income Statement
38
Negative
Balance Sheet
62
Positive
Cash Flow
71
Positive
| Breakdown | Jul 2026 | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.35B | 1.27B | 1.34B | 1.59B | 2.02B |
| Gross Profit | 588.49M | 562.94M | 592.04M | 675.61M | 886.67M |
| EBITDA | 932.00K | -1.90M | -88.94M | -113.16M | -148.76M |
| Net Income | -12.61M | -28.74M | -128.84M | -171.97M | -207.12M |
Balance Sheet | |||||
| Total Assets | 479.42M | 480.62M | 486.86M | 614.48M | 764.53M |
| Cash, Cash Equivalents and Short-Term Investments | 172.54M | 234.85M | 246.97M | 257.60M | 212.98M |
| Total Debt | 68.34M | 93.51M | 117.50M | 153.63M | 311.68M |
| Total Liabilities | 283.32M | 277.64M | 299.84M | 367.17M | 441.88M |
| Stockholders Equity | 196.10M | 202.98M | 187.02M | 247.31M | 322.65M |
Cash Flow | |||||
| Free Cash Flow | 19.85M | 8.88M | 14.24M | 38.82M | 9.04M |
| Operating Cash Flow | 39.07M | 25.18M | 28.21M | 57.83M | 55.40M |
| Investing Cash Flow | -15.40M | -59.12M | -78.74M | 64.33M | 11.63M |
| Financing Cash Flow | -42.33M | -14.97M | -15.49M | -15.54M | -60.25M |
Stitch Fix Technical Analysis
Negative
3.17
Price Trends
2.90
Negative
3.41
Negative
3.61
Negative
Market Momentum
-0.08
Negative
45.46
Neutral
64.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFIX, the sentiment is Negative. The current price of 3.17 is above the 20-day moving average (MA) of 2.57, above the 50-day MA of 2.90, and below the 200-day MA of 3.61, indicating a neutral trend. The MACD of -0.08 indicates Negative momentum. The RSI at 45.46 is Neutral, neither overbought nor oversold. The STOCH value of 64.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SFIX.
Stitch Fix Risk Analysis
Stitch Fix disclosed 45 risk factors in its most recent earnings report. Stitch Fix reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stitch Fix Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $346.60M | 12.81 | 21.10% | 1.50% | -2.25% | -24.65% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
60 Neutral | $446.84M | 7.90 | 8.38% | 2.20% | 7.32% | -13.12% | |
53 Neutral | $73.63M | 0.17 | -91.16% | ― | 21.17% | ― | |
51 Neutral | $371.42M | -27.36 | -6.22% | ― | 6.39% | 57.76% | |
49 Neutral | $218.39M | -24.23 | 4.27% | ― | -11.16% | -384.28% | |
48 Neutral | $30.87M | -3.59 | -903.25% | ― | -10.40% | 83.52% |
* Consumer Cyclical Sector Average
SFIX
Stitch Fix
2.58
-2.00
-43.72%
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48.98%
RENT
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2.18
-2.47
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LVLU
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137.61%
Stitch Fix Corporate Events
Executive/Board ChangesShareholder Meetings
Stitch Fix Announces Planned Board Transition as Director Retires
Neutral
Sep 25, 2026
On September 21, 2026, Stitch Fix, Inc. disclosed that board member J. William Gurley will not stand for re‑election at the company’s 2026 annual meeting of stockholders. He will retire from the board at the end of his current term at ...
Business Operations and StrategyRegulatory Filings and Compliance
Stitch Fix Updates Corporate Bylaws and Governance Rules
Neutral
Jul 28, 2026
On July 22, 2026, Stitch Fix, Inc.’s Board of Directors approved amendments to the company’s Amended and Restated Bylaws, which became effective the same day. The changes update disclosure requirements for board nominees, other propose...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.