Online apparel retailer Stitch Fix Q1 revenue beats, driven by successful transformation strategy

Stitch Fix

04/12/2025 21:23

Overview

Stitch Fix fiscal Q1 revenue grows 7.3% yr/yr, beating analyst expectations

Adjusted EBITDA for fiscal Q1 beats consensus, indicating operational efficiency

Company reports net loss of $6.4 mln for fiscal Q1

Outlook

Company expects Q2 2026 net revenue between $335 mln and $340 mln

Stitch Fix forecasts FY 2026 net revenue of $1.32 bln to $1.35 bln

Company expects FY 2026 gross margin between 43% and 44%

Result Drivers

TRANSFORMATION STRATEGY - CEO Matt Baer attributes revenue growth to successful execution of transformation strategy

GENAI TECHNOLOGY - Co leverages GenAI technology to enhance client-centric shopping experience

PERSONALIZED EXPERIENCE - Co emphasizes personalized shopping experience as a key driver of client engagement

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$342.10 mln
$336.71 mln (4 Analysts)
Q1 EPS
-$0.05
Q1 Net Income
-$6.40 mln
Q1 Adjusted EBITDA
Beat
$13.40 mln
$10.23 mln (4 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

The average consensus recommendation for the online services peer group is "buy."

Wall Street's median 12-month price target for Stitch Fix Inc is $6.00, about 31.6% above its December 3 closing price of $4.56

Press Release: ID:nBw5TmrLWa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)