Key Takeaways
- Stitch Fix shares plummeted Wednesday, a day after the online personal styling company reported widening losses.
- Stitch Fix’s outlook was also weaker than analysts had anticipated.
- CEO Matt Baer said the company has “a lot of work still to do,” and that the company could return to revenue growth by fiscal 2026.
Stitch Fix (SFIX) shares plunged Wednesday, a day after the online personal styling company reported a wider-than-expected loss, and issued revenue projections below analyst estimates.
Stitch Fix reported a $36.5 million loss for the fiscal fourth-quarter, widening from $28.66 million a year ago. Revenue dropped 12% year-over-year to $319.55 million. Both figures came in well below analyst estimates compiled by Visible Alpha.
Stitch Fix has been challenged by a declining subscriber base in recent years, with just over 2.5 million active subscribers at the end of the fiscal year, down nearly 5% from the third quarter and nearly 20% from the same time last year.
Stitch Fix’s Outlook Disappoints
The company said it anticipates first-quarter revenue of between $303 million and $310 million, lower than the $324 million consensus projection from analysts heading into Tuesday’s results. For the full fiscal year, Stitch Fix projects revenue of $1.11 billion to $1.16 billion, down from $1.34 billion in fiscal 2024 and lower than the $1.3 billion analysts expected.
“While there is a lot of work still to do, I am confident we are on the right path to continue to improve the trajectory of our business which includes returning to revenue growth by the end of FY26,” Stitch Fix CEO Matt Baer said.
Stitch Fix shares were down 34% to $2.47 in early trading Wednesday following the news.