Stitch Fix narrows annual loss, forecasts growth in fiscal 2026

Fashion subscription service Stitch Fix reported a narrower annual loss for fiscal 2025, as revenue trends improved and the company pushed forward with its transformation strategy.

For the fourth quarter ended August 2, revenues slipped 2.6% to $311.2 million. Adjusting for the extra week in fiscal 2024, however, sales rose 4.4%. The company posted a net loss of $8.6 million, or $0.07 per diluted share. Active clients fell 7.9% year-over-year to 2.31 million, though revenue per active client increased 3% to $549.

For the full-year, Stitch Fix generated $1.27 billion in revenue, down 5.3% from fiscal 2024, or 3.7% lower excluding the extra week. Net loss narrowed to $28.8 million, or $0.22 per share.

“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 US apparel market,” said Matt Baer, CEO, Stitch Fix.

“Our positive momentum was driven by the successful execution of our transformation strategy, including the improvements to our client experience and assortment. Looking ahead, we will continue to fuel growth by harnessing the power of AI, our assortment of leading brands, and the human connection of our Stylists, to deliver the most client-centric and personalized shopping experience.”

Looking ahead, Stitch Fix expects first-quarter fiscal 2026 revenue between $333 million and $338 million, representing 4.4% to 6% year-over-year growth, with adjusted EBITDA of $8 million to $11 million.

For the full year, revenue is projected between $1.28 billion and $1.33 billion, up 1% to 5% from fiscal 2025.