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Stitch Fix (SFIX)
NASDAQ:SFIX
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Stitch Fix
(NASDAQ:SFIX)
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Rating:54Neutral
Price Target:
$5.00
▼(-8.76% Downside)
Stitch Fix's overall stock score reflects significant financial challenges, particularly in profitability and cash flow management. However, the positive momentum in technical analysis and encouraging earnings call results, including revenue growth and strategic AI integration, provide some optimism. Valuation remains a concern due to negative earnings and lack of dividends.
Positive Factors
Revenue Growth
The 7.3% YoY revenue growth indicates strong market demand and successful execution of strategic initiatives, enhancing long-term business prospects.
AI and Technology Integration
The integration of AI technologies enhances client engagement and operational efficiency, providing a competitive edge and supporting sustainable growth.
Client Engagement
Increased client engagement and spending per client reflect strong customer loyalty and the effectiveness of personalization strategies, driving future revenue.
Negative Factors
Profitability Challenges
Persistent profitability issues and weak cash generation can hinder investment in growth initiatives and impact long-term financial health.
Gross Margin Decline
Declining gross margins due to increased costs and tariffs may pressure profitability, requiring strategic adjustments to maintain financial stability.
Cash Flow Challenges
Declining free cash flow growth suggests liquidity challenges, limiting the company's ability to invest in growth and manage financial obligations effectively.
Stitch Fix (SFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$727.36M
Dividend YieldN/A
Average Volume (3M)2.55M
Price to Earnings (P/E)―
Beta (1Y)2.04
Revenue Growth-0.08%
EPS Growth73.05%
CountryUS
Employees4,570
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.05
Shares Outstanding118,645,940
10 Day Avg. Volume3,099,321
30 Day Avg. Volume2,548,068
Financial Highlights & Ratios
PEG Ratio0.25
Price to Book (P/B)2.85
Price to Sales (P/S)0.46
P/FCF Ratio62.30
Enterprise Value/Market Cap0.55
Enterprise Value/Revenue0.31
Enterprise Value/Gross Profit0.71
Enterprise Value/Ebitda-65.24
Forecast
1Y Price Target
$6.00Price Target Upside9.49% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.22
Revenue Forecast (FY)$1.31B
Stitch Fix Business Overview & Revenue Model
Company DescriptionStitch Fix (SFIX) is an online personal styling service that blends technology and human expertise to deliver a curated shopping experience for its clients. Founded in 2011, the company operates in the retail and e-commerce sectors, offering a range of apparel, accessories, and footwear for men, women, and children. Customers receive personalized clothing selections based on their style preferences, sizes, and feedback, which are shipped directly to their homes for purchase or return.
How the Company Makes MoneyStitch Fix makes money primarily through its subscription model, where customers pay a styling fee for personalized clothing selections. This fee is credited towards any purchases made from the 'Fix' received. The company generates revenue by selling clothing and accessories, with customers typically purchasing a portion of the items sent in their curated boxes. Additionally, Stitch Fix offers a direct buy option on its website, where customers can shop items outside of the subscription model. Key revenue streams include the styling fees, sales from 'Fixes', and direct purchases. The company also leverages data analytics to optimize its inventory and personalize the shopping experience, which helps drive customer retention and repeat purchases, contributing significantly to its earnings.
Stitch Fix Earnings Call Summary
Earnings Call Date:Dec 04, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Mar 09, 2026
Earnings Call Sentiment Positive
The earnings call showcased strong revenue growth, positive client engagement metrics, and successful integration of AI technologies. However, challenges remain in maintaining gross margins and growing the active client base. Despite these issues, the company's performance and strategic initiatives indicate a positive trajectory.Q1-2026 Updates
Positive Updates
Revenue Growth Exceeds Expectations
Revenue for Q1 2026 accelerated 7.3% year over year to $342.1 million, exceeding the company's outlook.
Strong Performance in Apparel Segments
Women's business saw a 19% increase in seasonal categories, while men's business delivered double-digit growth with categories like fleece and sweaters growing 57%.
Improved Customer Metrics
Active clients reached 2.3 million, with revenue per active client up 5.3% year over year. Average order value rose 9.6%.
Successful AI and Technology Integration
Stitch Fix introduced AI-powered tools like vision and AI style assistant, enhancing client engagement and operational efficiency.
Record Black Friday to Cyber Monday Sales
The company saw record freestyle sales during the holiday period, driven by new features like themed fixes and family accounts.
Negative Updates
Gross Margin Decline
Gross margin was 43.6%, down from the previous year due to increased transportation expenses, investments in lower-margin categories, and tariffs.
Active Client Base Challenges
Active clients were slightly down compared to last year, although the company anticipated sequential growth in upcoming quarters.
Company Guidance
During the Stitch Fix first quarter 2026 earnings call, the company reported a robust performance, exceeding their revenue outlook with a 7.3% year-over-year increase to $342.1 million. Adjusted EBITDA was also strong, reaching $13.4 million, which is nearly 4% of revenue. The company highlighted significant growth in average order value (AOV), which rose by 9.6% due to a higher number of items per order and improved assortment. Stitch Fix ended the quarter with 2.3 million active clients, marking the sixth consecutive quarter of year-over-year active client growth rates and a return to sequential growth in the men's business. Revenue per active client (RPAC) reached $559, up 5.3% year-over-year, emphasizing increased client engagement and spending. The company raised its full-year guidance, expecting total revenue between $1.32 billion and $1.35 billion, with total adjusted EBITDA projected between $38 million and $48 million. For Q2, revenue is anticipated to be between $335 million and $340 million, with adjusted EBITDA ranging from $10 million to $13 million. The company continues to leverage AI and personalization to drive client engagement and retention, contributing to its competitive advantage and market share gains.Stitch Fix Financial Statement Overview
Summary
Stitch Fix faces significant financial challenges with declining revenues and persistent losses, leading to negative profitability metrics. While there is some improvement in leverage, the overall financial health remains precarious with negative equity returns and weak cash flow generation.Income Statement
Stitch Fix's income statement reveals significant challenges. The company has experienced a sharp decline in revenue, with a TTM revenue growth rate of -65.3%. Profitability metrics are concerning, with negative net profit and EBIT margins, indicating ongoing losses. The gross profit margin remains relatively stable at around 44%, but overall, the company is struggling to achieve profitability.45
Neutral
Balance Sheet
The balance sheet shows moderate leverage with a debt-to-equity ratio of 0.43 in the TTM period, which is an improvement from previous years. However, the return on equity remains negative, reflecting ongoing losses. The equity ratio is relatively low, indicating a higher reliance on debt financing. Overall, the balance sheet suggests financial instability with potential risks due to negative equity returns.50
Neutral
Cash Flow
Cash flow analysis indicates some positive aspects, such as a positive operating cash flow in the TTM period. However, free cash flow has declined, and the free cash flow growth rate is negative. The operating cash flow to net income ratio is low, suggesting limited cash generation relative to net losses. While there are signs of cash flow management, the overall cash flow position remains weak.40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.27B | 1.34B | 1.59B | 2.02B | 2.10B |
| Gross Profit | 562.94M | 592.04M | 675.61M | 886.67M | 947.64M |
| EBITDA | -1.90M | -88.94M | -113.16M | -148.76M | -33.43M |
| Net Income | -28.74M | -128.84M | -171.97M | -207.12M | -8.88M |
Balance Sheet | |||||
| Total Assets | 480.62M | 486.86M | 614.48M | 764.53M | 819.15M |
| Cash, Cash Equivalents and Short-Term Investments | 234.85M | 246.97M | 257.60M | 212.98M | 231.33M |
| Total Debt | 93.51M | 117.50M | 154.76M | 170.35M | 147.32M |
| Total Liabilities | 277.64M | 299.84M | 367.17M | 441.88M | 358.30M |
| Stockholders Equity | 202.98M | 187.02M | 247.31M | 322.65M | 460.85M |
Cash Flow | |||||
| Free Cash Flow | 9.28M | 14.24M | 38.82M | 9.04M | -50.93M |
| Operating Cash Flow | 25.18M | 28.21M | 57.83M | 55.40M | -15.68M |
| Investing Cash Flow | -59.12M | -78.74M | 64.33M | 10.23M | 39.09M |
| Financing Cash Flow | -14.97M | -15.49M | -15.54M | -60.25M | -38.88M |
Stitch Fix Technical Analysis
Positive
5.48
Price Trends
4.41
Positive
4.76
Positive
4.31
Positive
Market Momentum
0.30
Negative
71.36
Negative
92.74
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFIX, the sentiment is Positive. The current price of 5.48 is above the 20-day moving average (MA) of 4.56, above the 50-day MA of 4.41, and above the 200-day MA of 4.31, indicating a bullish trend. The MACD of 0.30 indicates Negative momentum. The RSI at 71.36 is Negative, neither overbought nor oversold. The STOCH value of 92.74 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
58 Neutral | $217.15M | 6.51 | 28.98% | 1.85% | -2.67% | -22.93% | |
54 Neutral | $727.36M | ― | -14.67% | ― | -0.08% | 73.05% | |
54 Neutral | $213.08M | ― | ― | ― | 2.91% | 94.12% | |
48 Neutral | $57.90M | ― | -34.77% | ― | -8.31% | 36.10% | |
45 Neutral | $172.24M | ― | ― | ― | -12.08% | 93.16% | |
45 Neutral | $112.06M | ― | ― | ― | -7.33% | -114.80% |
* Consumer Cyclical Sector Average
SFIX
Stitch Fix
5.48
1.44
35.64%
PLCE
Children's Place
7.49
-3.42
-31.35%
TLYS
Tilly's
1.91
-1.54
-44.64%
JILL
JJill
14.04
-12.20
-46.49%
CURV
Torrid Holdings
1.03
-3.24
-75.88%
RENT
Rent the Runway
6.65
-1.01
-13.19%
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.