Stitch Fix Bumps Up FY Outlook, Citing Improvements to Customer Experience, Assortment

Dow Jones
Jun 11

By Kelly Cloonan

 

Stitch Fix bumped up its fiscal-year outlook after revenue rose in its latest quarter, with the company citing a boost from efforts to improve its customer experience and assortment.

The online personal-styling-services company said Wednesday it projects adjusted earnings before interest, taxes, depreciation, and amortization of $49 million to $52 million for the fiscal year, up from a previous range of $42 million to $50 million. The company also bumped up the midpoint of its revenue outlook, forecasting roughly $1.35 billion in sales, compared with prior guidance of $1.33 billion to $1.35 billion.

For the current quarter, Stitch Fix expects adjusted Ebitda of $7 million to $10 million and sales of $322 million to $327 million. Analysts polled by FactSet forecast adjusted Ebitda of $7.7 million and sales of $323.7 million for the quarter.

The updated guidance comes as Stitch Fix posted a narrower loss as sales rose in its latest quarter, with both metrics topping Wall Street's expectations.

Chief Executive Matt Baer said the results show that improvements the company has made to its customer experience and assortment are resonating, with its active client base growing sequentially.

"We remain confident that our disciplined approach will enable us to continue to strengthen our position as our clients' retailer of choice for apparel, footwear and accessories, as well as navigate today's dynamic consumer environment," Baer said.

For the third quarter, Stitch Fix narrowed its loss to $1.53 million, or 1 cent a share, from a loss of $7.38 million, or 6 cents a share, a year earlier. Analysts polled by FactSet expected a loss of 6 cents a share.

Revenue rose 4.7% to $340.3 million, compared with analyst estimates of $333.5 million.

Stitch Fix had 2.31 million active clients at the end of the quarter, up 0.9% from the prior quarter and down 1.9% year over year. Net revenue per active client was $578, up 6.6% from the year-ago period.

 

Write to Kelly Cloonan at kelly.cloonan@wsj.com

 

(END) Dow Jones Newswires

June 10, 2026 16:05 ET (20:05 GMT)

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