Stitch Fix (SFIX)
NASDAQ:SFIX
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Stitch Fix
(NASDAQ:SFIX)
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Rating:60Neutral
Price Target:
$3.50
▲(12.54% Upside)
Action:ReiteratedDate:04/02/26
The score is driven primarily by improving financials—especially positive and rebounding free cash flow—supported by a constructive earnings-call outlook with tightened guidance and profitability progress. These positives are tempered by weak technical trends (below key moving averages with negative MACD) and limited valuation support given ongoing losses and no dividend.
Positive Factors
Cash Generation
Stitch Fix has returned to positive operating and free cash flow on a TTM basis, reflecting improved unit economics and tighter expense discipline. Durable positive FCF supports reinvestment in assortment, tech, and customer acquisition, funds buybacks, and provides a buffer through consumer cycles if sustained.
Negative Factors
Negative Profitability
Despite improving margins, the company remains unprofitable on a net basis and ROE is negative, implying capital currently fails to earn adequate returns. Persistent negative profitability pressures reinvestment capacity and means the company must sustain margin gains and revenue growth to convert cash-flow improvements into lasting profitability.
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Positive Factors
Negative Factors
Cash Generation
Stitch Fix has returned to positive operating and free cash flow on a TTM basis, reflecting improved unit economics and tighter expense discipline. Durable positive FCF supports reinvestment in assortment, tech, and customer acquisition, funds buybacks, and provides a buffer through consumer cycles if sustained.
Read all positive factors
Stitch Fix (SFIX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$424.59M
Dividend YieldN/A
Average Volume (3M)2.41M
Price to Earnings (P/E)―
Beta (1Y)1.98
Revenue Growth-0.08%
EPS Growth73.05%
CountryUS
Employees4,570
SectorConsumer Cyclical
Sector Strength84
IndustryApparel - Retail
Share Statistics
EPS (TTM)-0.02
Shares Outstanding121,382,904
10 Day Avg. Volume2,072,959
30 Day Avg. Volume2,410,018
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 Cap0.91
Enterprise Value/Revenue0.29
Enterprise Value/Gross Profit0.67
Enterprise Value/Ebitda94.14
Forecast
1Y Price Target
$4.50Price Target Upside44.69% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.18
Revenue Forecast (FY)$1.34B
Stitch Fix Business Overview & Revenue Model
Company Description
Stitch Fix, Inc. sells a range of apparel, shoes, and accessories through its Website and mobile application in the United States. It offers denim, dresses, blouses, skirts, shoes, jewelry, and handbags for men, women, and kids under the Stitch Fi...
How the Company Makes Money
Stitch Fix makes money primarily by selling apparel and accessories directly to clients. Its core revenue stream comes from the Stitch Fix “Fix” experience: a client requests a Fix, receives a shipment of curated items selected using a mix of styl...
Stitch Fix Earnings Call Summary
Earnings Call Date:Mar 11, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 09, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational momentum: double-digit outperformance in several categories, sustained margin improvement, higher revenue per client, growing adoption of AI-driven features, and tightened full-year guidance with profitability targets. Offsetting this are cautious notes about back-half deceleration due to tougher comps, modest near-term active-client growth as the base is rebuilt, macro risks (e.g., higher gas prices), an inventory increase, and an inconsistency in reported EBITDA figures in the transcript. Overall, the positives (robust top-line growth, improved unit economics, product and AI-driven engagement, and tightened guidance) outweigh the concerns, though management remains appropriately cautious on the back half.Positive Updates
Revenue Growth Exceeds Outlook
Revenue of $341.3 million, up 9.4% year over year, exceeded company outlook and meaningfully outperformed the broader U.S. apparel, footwear, and accessories market (which contracted 0.5% in the period).
Negative Updates
Guidance Notes Deceleration in Back Half
Management expects revenue growth to moderate in H2 due to lapping stronger AOV comps from the prior year (Q3/Q4 last year had AOV growth of ~10%–12%); back-half AOV growth is expected to be ~4%–6%.
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Q2-2026 Updates
Positive
Negative
Revenue Growth Exceeds Outlook
Revenue of $341.3 million, up 9.4% year over year, exceeded company outlook and meaningfully outperformed the broader U.S. apparel, footwear, and accessories market (which contracted 0.5% in the period).
Read all positive updates
Company Guidance
Stitch Fix guided FY2026 revenue of $1.33–$1.35 billion with total adjusted EBITDA of $42–$50 million and expects to be free‑cash‑flow positive for the year; full‑year gross margin is expected to be ~43%–44% and advertising to run 9%–10% of revenue. For Q3 the company expects revenue of $330–$335 million and adjusted EBITDA of $7–$10 million, with sequential net active client adds expected to be positive (roughly <1% quarter‑over‑quarter client growth anticipated) and contribution margins to remain above 30%. Management said it tightened the back‑half revenue range given easier comps (AOV growth in the back half assumed ~4%–6%), raised confidence in momentum versus last quarter’s outlook, and indicated the Q4 midpoint implies roughly ~4% revenue growth.Stitch Fix Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
63
Positive
Cash Flow
72
Positive
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.32B | 1.27B | 1.34B | 1.59B | 2.02B | 2.10B |
| Gross Profit | 577.54M | 562.94M | 592.04M | 675.61M | 886.67M | 947.64M |
| EBITDA | 4.11M | -1.90M | -88.94M | -113.16M | -148.76M | -33.43M |
| Net Income | -24.97M | -28.74M | -128.84M | -171.97M | -207.12M | -8.88M |
Balance Sheet | ||||||
| Total Assets | 507.81M | 480.62M | 486.86M | 614.48M | 764.53M | 819.15M |
| Cash, Cash Equivalents and Short-Term Investments | 227.71M | 234.85M | 246.97M | 257.60M | 212.98M | 231.33M |
| Total Debt | 80.60M | 93.51M | 117.50M | 154.76M | 170.35M | 147.32M |
| Total Liabilities | 298.48M | 277.64M | 299.84M | 367.17M | 441.88M | 358.30M |
| Stockholders Equity | 209.34M | 202.98M | 187.02M | 247.31M | 322.65M | 460.85M |
Cash Flow | ||||||
| Free Cash Flow | 27.70M | 9.28M | 14.24M | 38.82M | 9.04M | -50.93M |
| Operating Cash Flow | 45.75M | 25.18M | 28.21M | 57.83M | 55.40M | -15.68M |
| Investing Cash Flow | -21.62M | -59.12M | -78.74M | 64.33M | 10.23M | 39.09M |
| Financing Cash Flow | -18.70M | -14.97M | -15.49M | -15.54M | -60.25M | -38.88M |
Stitch Fix Technical Analysis
Negative
3.11
Price Trends
3.69
Negative
4.29
Negative
4.48
Negative
Market Momentum
-0.10
Negative
38.17
Neutral
35.18
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SFIX, the sentiment is Negative. The current price of 3.11 is below the 20-day moving average (MA) of 3.29, below the 50-day MA of 3.69, and below the 200-day MA of 4.48, indicating a bearish trend. The MACD of -0.10 indicates Negative momentum. The RSI at 38.17 is Neutral, neither overbought nor oversold. The STOCH value of 35.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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% | |
60 Neutral | $424.59M | -60.75 | -12.23% | ― | -0.08% | 73.05% | |
56 Neutral | $140.18M | 3.76 | -21.26% | ― | -8.31% | 36.10% | |
55 Neutral | $163.68M | 8.40 | 23.05% | 2.25% | -2.67% | -22.93% | |
46 Neutral | $173.80M | -16.58 | 0.97% | ― | -7.33% | -114.80% | |
45 Neutral | $166.29M | 0.05 | -6.46% | ― | 2.91% | 94.12% | |
44 Neutral | $74.71M | -9.20 | 289.32% | ― | -10.09% | 81.44% |
* Consumer Cyclical Sector Average
SFIX
Stitch Fix
3.11
-0.05
-1.58%
PLCE
Children's Place
3.37
-3.62
-51.79%
TLYS
Tilly's
4.60
2.70
142.11%
JILL
JJill
11.00
-5.79
-34.48%
CURV
Torrid Holdings
1.75
-3.36
-65.75%
RENT
Rent the Runway
4.98
0.60
13.70%
Stitch Fix Corporate Events
Business Operations and StrategyStock Buyback
Stitch Fix Resumes Share Repurchase Program, Signals Confidence
Positive
Apr 1, 2026
On April 1, 2026, Stitch Fix said it had resumed activity under its previously authorized $150 million share repurchase program for its Class A common stock, first approved by the board in January 2022. The move underscores management’s will...
Business Operations and StrategyExecutive/Board Changes
Stitch Fix Announces Upcoming Product and Technology Leadership Change
Neutral
Mar 17, 2026
On March 12, 2026, Stitch Fix announced that Chief Product and Technology Officer Anthony Bacos has notified the company of his intention to retire, effective August 1, 2026. His planned departure marks a forthcoming leadership transition in Stitc...
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.