Stitch Fix reported first‑quarter 2026 results that exceeded expectations. Revenue rose to $342.1 million, a 7.3 % year‑over‑year increase, beating the consensus estimate of $336.08 million by $6.02 million (1.8 %). The company posted an earnings per share of –$0.05, matching the analyst consensus of –$0.05. Compared with the same quarter a year earlier, revenue grew from $318.8 million and the company’s net loss widened to $6.3 million, with a diluted loss per share of $0.05.
Gross margin slipped to 43.6 %, a decline of 180 basis points from the prior year, reflecting a shift toward lower‑margin apparel categories and the impact of higher cost of goods sold. Despite the margin compression, adjusted EBITDA reached $10 million to $13 million, translating to a 3.0 % to 3.8 % margin. The company’s ability to generate positive adjusted EBITDA after a loss in net income underscores disciplined cost management and the benefits of scale.
Management raised its outlook for the remainder of the fiscal year. Guidance for Q2 projects net revenue of $335 million to $340 million and adjusted EBITDA of $10 million to $13 million, unchanged from the prior guidance. The full‑year revenue outlook was increased to $1.32 billion to $1.35 billion from $1.28 billion to $1.31 billion, while adjusted EBITDA guidance was lifted to $38 million to $48 million from $30 million to $40 million. The upward revisions signal confidence that demand will continue to accelerate and that cost discipline will sustain profitability.
The revenue growth was driven by broad‑based expansion across both women’s and men’s apparel. Women’s fall sales, sneakers, men’s seasonal categories, denim, and sneakers all accelerated, while the company’s new generative‑AI features and enhanced client engagement tools helped increase revenue per active client by 5.3 % even as the active‑client base fell 5.2 % year‑over‑year. CEO Matt Baer highlighted that the company is “increasingly becoming the retailer of choice for more of our clients’ apparel and accessories needs,” attributing the momentum to the combination of GenAI technology, stylist expertise, and a strong assortment.
CFO David Aufderhaar emphasized that the company’s resilient demand and disciplined cost structure underpin the raised guidance, noting that the firm is “increasingly becoming the retailer of choice for more of our clients’ apparel and accessories needs.” The guidance reflects expectations of continued growth in revenue per client and the ability to maintain adjusted EBITDA margins through ongoing investments in AI and operational efficiencies.
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