Stitch Fix Q4 revenue slightly misses estimates as active clients decline
Stitch Fix Q4 revenue slightly misses estimates as active clients decline
Overview
US online personal styling service's Q4 revenue grew 4.2% yr/yr, slightly missed analyst expectations
Q4 adjusted EBITDA beat analyst expectations, reflecting improved operating efficiency
Company repurchased 2.7 mln shares for $11.3 mln in Q4
Shares of the company were down about 19% in extended trading
Outlook
Company sees Q1 2027 net revenue of $323 mln to $328 mln, down 5.6% to 4.1% YoY
Stitch Fix expects FY 2027 net revenue of $1.310 bln to $1.360 bln, down 2.8% to up 0.9% YoY
Company expects FY 2027 gross margin between 43% and 44% and positive free cash flow
Result Drivers
CLIENT ENGAGEMENT - Net revenue per active client rose 7.8% yr/yr, indicating increased client spending or engagement
ACTIVE CLIENT DECLINE - Active clients fell 1.4% quarter-over-quarter and year-over-year, reflecting challenges in client acquisition or retention
TRANSFORMATION EFFORTS - CEO said performance was supported by a reimagined client experience and more compelling assortment
Company press release: ID:nBw5RMgwqa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $324.40 mln | $325.60 mln (5 Analysts) |
Q4 Loss Per Share |
| $0.02 |
|
Q4 Net Loss |
| $2.10 mln |
|
Q4 Adjusted EBITDA | Beat | $10.80 mln | $7.94 mln (5 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "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 $5.00, about 67.2% above its September 22 closing price of $2.99
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For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(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.)