Stitch Fix Stock Dives on Soft Outlook

INVESTOPEDIA.COMSep 24, 12:32 PM UTC

Key insights

  • Stitch Fix shares dropped nearly 20% in premarket trading after the company released weaker-than-expected guidance for revenue and adjusted EBITDA for both the current quarter and the full fiscal year. The company cited a challenging consumer environment and a lower active client starting point. The fiscal fourth-quarter results met analyst expectations for earnings per share but slightly missed on revenue.
Stitch Fix Stock Dives on Soft Outlook

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Support for Stitch Fix’s stock is unraveling after the company’s latest results.

Shares of Stitch Fix (SFIX) plunged nearly 20% in premarket trading Thursday, a day after the online personal styling company issued weaker-than-expected guidance for the current quarter and new fiscal year.

Stitch Fix said it sees fiscal 2027 first-quarter revenue of $323 million to $328 million and full-year revenue of $1.31 billion to $1.36 billion. Analysts surveyed by Visible Alpha expected $352.2 million and $1.40 billion, respectively. The company said its full-year forecast “reflects a more challenging consumer environment and a lower active client starting point, which we expect will temper revenue growth.”1

The San Francisco-based firm also projected adjusted EBITDA of $3 million to $6 million in the current quarter and $27 million to $42 million for the full year. Visible Alpha consensus called for $13.8 million and $54.6 million, respectively.

For its fiscal fourth quarter of 2026, Stitch Fix reported a loss of 2 cents per share on revenue of $324.4 million. Analysts expected a loss of 6 cents per share on revenue of $324.7 million.

Entering Thursday’s session, Stitch Fix shares were down 46% this year.

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