Stitch Fix (NASDAQ:SFIX) Releases Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Stitch Fix (NASDAQ:SFIX) announced its earnings results on Wednesday. The company reported ($0.01) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.06) by $0.05, FiscalAI reports. The business had revenue of $340.28 million for the quarter, compared to analyst estimates of $333.51 million. Stitch Fix had a negative net margin of 1.43% and a negative return on equity of 9.30%. The company’s revenue for the quarter was up 4.7% compared to the same quarter last year. During the same quarter last year, the business earned ($0.06) earnings per share.

Here are the key takeaways from Stitch Fix’s conference call:

• Revenue rose 4.7% to $340.3 million, marking Stitch Fix’s fifth straight quarter of year-over-year growth and coming in above expectations.
• Active clients reached 2.3 million, up 21,000 sequentially, while retention improved for a seventh straight quarter and reached the highest level in four years.
• RPAC hit a record $578 as larger Fixes, higher items per Fix, and assortment improvements continued to lift client spend and engagement.
• Profitability and cash generation remained solid, with gross margin at 43.7%, contribution margin above 30% for the ninth consecutive quarter, $13.2 million in adjusted EBITDA, and $6.5 million in free cash flow.
• The company raised full-year FY2026 revenue and adjusted EBITDA guidance, citing resilient existing-client demand, but also said Q4 active clients are expected to decline slightly sequentially due to seasonality and a tougher consumer backdrop.

Stitch Fix Price Performance

Shares of SFIX stock opened at $4.20 on Friday. The firm’s 50-day moving average is $3.49 and its two-hundred day moving average is $4.06. Stitch Fix has a 12 month low of $2.95 and a 12 month high of $5.94. The company has a market capitalization of $573.38 million, a PE ratio of -32.31 and a beta of 2.31.

Key Stories Impacting Stitch Fix

Here are the key news stories impacting Stitch Fix this week:

• Positive Sentiment: Stitch Fix reported fiscal Q3 EPS of $(0.01), beating expectations for a $(0.06) loss, while revenue of $340.3 million also topped estimates. The company said revenue rose 4.7% year over year, marking another quarter of growth. Article: Stitch Fix Announces Third Quarter of Fiscal 2026 Financial Results
• Positive Sentiment: Management said it saw record revenue and client growth, with improvements tied to revamped personal shopping features and a better client experience, suggesting the turnaround strategy is gaining traction. Article: Stitch Fix Reverses Client Decline by Revamping Personal Shopping Features
• Positive Sentiment: The company raised its fiscal 2026 outlook, signaling confidence in its near-term operating trends and helping support sentiment around the stock. Article: SFIX Stock Falls 9% Despite Narrower Q3 Loss & Raised FY26 Outlook
• Neutral Sentiment: Quarterly call materials and transcripts focused on the company’s latest operating update and guidance, but did not add much new beyond the earnings release. Article: Stitch Fix, Inc. (SFIX) Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite the beat and higher outlook, some investors appear focused on slower-than-hoped growth and ongoing margin pressure, which may be limiting upside in the shares. Article: SFIX Stock Falls 9% Despite Narrower Q3 Loss & Raised FY26 Outlook

Analysts Set New Price Targets

SFIX has been the topic of a number of recent research reports. William Blair restated a “mixed” rating on shares of Stitch Fix in a research report on Friday, March 6th. Weiss Ratings restated a “sell (d-)” rating on shares of Stitch Fix in a research report on Tuesday, April 21st. Wall Street Zen lowered shares of Stitch Fix from a “buy” rating to a “hold” rating in a research report on Saturday, May 2nd. UBS Group boosted their price target on shares of Stitch Fix from $4.00 to $4.50 and gave the stock a “neutral” rating in a research report on Thursday. Finally, Telsey Advisory Group lowered their price target on shares of Stitch Fix from $6.00 to $5.00 and set a “market perform” rating on the stock in a research report on Thursday, March 12th. One analyst has rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus target price of $5.13.

Insider Transactions at Stitch Fix

In other Stitch Fix news, insider Casey O’connor sold 60,000 shares of Stitch Fix stock in a transaction dated Friday, April 10th. The shares were sold at an average price of $3.08, for a total transaction of $184,800.00. Following the transaction, the insider directly owned 480,334 shares of the company’s stock, valued at $1,479,428.72. The trade was a 11.10% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO David Aufderhaar sold 65,709 shares of Stitch Fix stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $3.09, for a total transaction of $203,040.81. Following the transaction, the chief financial officer directly owned 1,178,037 shares in the company, valued at $3,640,134.33. This trade represents a 5.28% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.09% of the stock is owned by insiders.

Hedge Funds Weigh In On Stitch Fix

A number of institutional investors have recently bought and sold shares of the company. Vanguard Group Inc. raised its stake in shares of Stitch Fix by 3.2% in the 3rd quarter. Vanguard Group Inc. now owns 7,682,725 shares of the company’s stock valued at $33,420,000 after acquiring an additional 240,584 shares during the period. Goldman Sachs Group Inc. raised its stake in shares of Stitch Fix by 73.3% in the 4th quarter. Goldman Sachs Group Inc. now owns 3,664,995 shares of the company’s stock valued at $19,241,000 after acquiring an additional 1,549,902 shares during the period. State Street Corp raised its stake in shares of Stitch Fix by 18.6% in the 4th quarter. State Street Corp now owns 3,239,044 shares of the company’s stock valued at $17,005,000 after acquiring an additional 508,588 shares during the period. Arrowstreet Capital Limited Partnership raised its stake in shares of Stitch Fix by 302.9% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 2,897,171 shares of the company’s stock valued at $12,603,000 after acquiring an additional 2,178,156 shares during the period. Finally, Geode Capital Management LLC raised its stake in shares of Stitch Fix by 10.5% in the 4th quarter. Geode Capital Management LLC now owns 2,791,632 shares of the company’s stock valued at $14,659,000 after acquiring an additional 266,356 shares during the period. 71.04% of the stock is owned by hedge funds and other institutional investors.

About Stitch Fix

Stitch Fix, Inc, headquartered in San Francisco, California, is a leading online personal styling service that blends data science with human expertise to deliver curated clothing and accessory selections. Founded in 2011 by Katrina Lake, the company pioneered a subscription-based model in which customers receive periodic “Fixes” tailored to their personal style, size and budget. Each shipment arrives with several handpicked items along with styling notes, allowing clients to review, purchase and return pieces at their convenience.

Clients begin by completing an online style profile that captures their measurements, design preferences and lifestyle needs.