Stitch Fix, Inc. (SFIX) Earnings
SFIX has beaten EPS estimates in 10 of its last 12 reported quarters (average surprise +48.1% over the last four).
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jun 10, 2026 | $-0.06 | $-0.01 | +83.3% | $333M | -0.2% |
| Mar 11, 2026 | $-0.05 | $-0.02 | +63.0% | $341M | +1.9% |
| Dec 4, 2025 | $-0.05 | $-0.05 | +0.0% | $342M | +2.2% |
| Sep 24, 2025 | $-0.13 | $-0.07 | +46.2% | $311M | +13.7% |
| Jun 10, 2025 | $-0.12 | $-0.06 | +50.0% | $325M | +5.8% |
| Mar 11, 2025 | $-0.11 | $-0.05 | +54.5% | $312M | +12.0% |
| Dec 10, 2024 | $-0.15 | $-0.05 | +66.7% | $319M | +3.9% |
| Sep 24, 2024 | $-0.19 | $-0.12 | +36.8% | $320M | +0.3% |
| Jun 4, 2024 | $-0.25 | $-0.15 | +40.0% | $323M | +1.4% |
| Mar 4, 2024 | $-0.21 | $-0.21 | +0.0% | $330M | -0.1% |
| Dec 5, 2023 | $-0.23 | $-0.22 | +4.3% | $365M | +0.7% |
| Sep 18, 2023 | $-0.22 | $-0.19 | +13.6% | $376M | +1.2% |
Source: company filings + earnings calendar. For informational purposes only — not investment advice.
Earnings call summary
Q3 FY2026 · June 10, 2026
AI summary of management’s prepared remarks and analyst Q&A. For informational purposes only — not investment advice.
Management highlights
### Overall Financial and Client Performance - Delivered Q3 revenue of $340.3 million, up 4.7% year-over-year, marking the fifth consecutive quarter of year-over-year revenue growth; revenue grew more than four times faster than the total U.S. apparel, footwear, and accessories market, driving further market share gains - Active clients totaled 2.3 million, growing 21,000 sequentially, marking the eighth consecutive quarter of improving year-over-year active client growth rates; new clients grew over 10% year-over-year for the third consecutive quarter - Revenue per active client (RPAC) reached $578, up 6.6% year-over-year, the ninth consecutive quarter of year-over-year RPAC growth and a new company record - Gross margin was 43.7%, contribution margin remained above 30% for the ninth consecutive quarter; adjusted EBITDA was $13.2 million (3.9% margin), above guidance - Q3 generated $6.5 million in free cash flow, ending the quarter with $229.4 million in cash and investments and no debt; repurchased 4.5 million shares for $15.1 million in Q3, leaving $104.9 million remaining in the authorized repurchase program ### Assortment and Category Expansion - Strategy focuses on optimizing market brand portfolio, investing in private brands, and expanding into new categories to enable head-to-toe outfitting and capture additional wallet share - Recently launched new category extensions including women's sunglasses (with brands La Specs, Air, Keep), expanded footwear offerings (adding Fry alongside growing established brands Adidas and New Balance), and added new activewear brands (Outdoor Voices, Mob & Golf, Spiritual Gangster, Cotopaxi) - Average unit retail (AUR) has grown for seven consecutive quarters, driven by assortment improvements across both market and private brands ### Client Base Health and Growth Initiatives - Focused on acquiring and retaining high lifetime value (LTV) clients; new client LTV has increased year-over-year for 11 consecutive quarters and is nearly double what it was three years ago - Household (family) accounts are a high-impact organic client acquisition channel that adds high-intent clients and expands family wallet share, and has contributed materially to sequential active client growth - Retention rates improved for seven straight quarters, reaching the highest level in four years in Q3; recurring shipment active clients continue to grow year-over-year, with new clients on recurring shipments growing even faster - Management's target is to return to year-over-year active client growth in fiscal 2027 ### AI and Innovation Across the Business - Stitch Fix Vision, an AI-powered personalized style visualization tool, delivers over 100% lift in 90-day freestyle spend for clients that use the tool; the company is expanding the feature to let clients generate their own personalized look images to deepen engagement - AI is applied across all business operations to improve efficiency: it has reduced private brand full assortment design from a multi-month cycle to approximately one week, and drives improvements in inventory management, intelligent pricing, and marketing execution - AI also improves efficiency across fulfillment, supply chain, and styling networks, supporting bottom-line leverage
Guidance
- For Q4 fiscal 2026: Management expects total revenue of $322-$327 million, and adjusted EBITDA of $7-$10 million; Q4 active clients are expected to decline 0.5%-1% sequentially due to typical seasonal weakness, but year-over-year active client comparisons are expected to continue improving. - For full fiscal 2026: Management tightened guidance ranges and raised the midpoints for both total revenue and adjusted EBITDA, reflecting stronger-than-expected client engagement resilience. Full year revenue is now expected to be $1.346-$1.351 billion, with adjusted EBITDA expected to be $49-$52 million. - Full year 2026 guidance is maintained for gross margin (43-44%), advertising as a percentage of revenue (9-10%), and full year positive free cash flow. - Management continues to expect AOV growth of 4-6% in the second half of fiscal 2026, with Q4 projected to come in at the higher end of that range, which was already baked into prior guidance.
Segment performance
Stitch Fix does not break out separate formal product segments in this call, but reports performance by business line and category: 1. Women's business: Posted top-line revenue gains, with combined activewear and athleisure growing 50% year-over-year; strong seasonal demand for sandals, skirts, and sneakers. Top performing private brands include Montgomery Post, 41 Hawthorn, and Market & Spruce. 2. Men's business: Grew double digits year-over-year for the fourth consecutive quarter, with warm weather categories (shorts, short sleeve woven tops, casual shoes) each growing over 30% year-over-year. Top performers include private brand Aylesbury, plus market brands Travis Matthew, Viore, and Bonobos; men's active clients grew year-over-year for the second consecutive quarter. 3. Private brands overall: Deliver approximately 500 basis points higher gross margin than market brands, with some private brands growing over 100% year-over-year, and increasing client demand and awareness. 4. New high-growth categories: Activewear, athleisure, footwear, and accessories each grew over 18% year-over-year in Q3, with management estimating these categories can unlock ~$1 billion in incremental revenue from existing clients.
Risks & headwinds
- Management notes the broader retail environment is increasingly challenged, with a more dynamic consumer backdrop and macroeconomic uncertainty. - Slight increases in client acquisition costs from marketing have been observed industry-wide, including at Stitch Fix, which is factored into current guidance. - Forward-looking statements are inherently uncertain, and actual results could differ materially from projected performance due to unforeseen market and operational factors, as detailed in the company's SEC filings.
Analyst Q&A
Q: What core strategies are driving the stronger-than-expected AOV growth the company has delivered for 11 straight quarters? /
A: The biggest driver is growing adoption of larger fix options, which let clients receive 6-8 items per order. Larger fixes have nearly double the AOV of traditional smaller fixes, capture additional wallet share, and support full head-to-toe outfitting for clients. Assortment improvements across both market and private brands have also driven consistent AUR growth for seven consecutive quarters; private brands deliver 500 basis points higher gross margin than market brands while meeting client demand for quality and value.
Q: What is household account penetration, and how does it impact client metrics, and how do you balance growth between Fix and Freestyle channels? /
A: Household accounts have seen strong sustained organic adoption since launch, and have made a material contribution to recent sequential active client growth; the feature adds high-intent new clients and lets Stitch Fix capture full household apparel wallet share. Management is indifferent to mix between Fix and Freestyle, focusing on overall engagement and wallet share regardless of how clients choose to shop; barriers between channels have been removed to let clients move seamlessly between them, and profitability for both channels is similar.
Q: What drove the upward adjustment to full year adjusted EBITDA guidance, and how will SG&A trend as the business returns to growth? /
A: Adjusted EBITDA guidance was raised primarily due to sustained expense discipline and operating leverage across the business: SG&A as a percentage of revenue fell 220 basis points year-over-year in Q3, and over 800 basis points compared to two years ago. AI and operational improvements have driven leverage across fulfillment, supply chain, and styling networks. Management will continue prioritizing SG&A leverage even as growth resumes, and no material incremental increase in SG&A as a share of revenue is expected.
Q: What is driving the ongoing doubling of new client LTV over the past three years, beyond the contribution of household accounts? /
A: The LTV growth is the aggregate impact of broad improvements to the client experience and assortment: larger fix options, better personalization features including Stitch Fix Vision, and focused targeted marketing that brings in clients who have high natural resonance for Stitch Fix's offering. A notable example of this targeted approach is marketing to clients undergoing body transformation from GLP-1 medication, where Stitch Fix's personalized styling service is uniquely positioned to meet their ongoing apparel needs, driving strong LTV for this segment.