Stitch Fix forecasts lower profitability despite quarterly sales growth

Stitch Fix ($SFIX) increased fiscal fourth-quarter revenue by 4.2% to $324.4 million, but active clients declined 1.4% to 2.277 million. The company reported a $2.1 million net loss and $10.8 million in adjusted EBITDA. Its full fiscal year produced $1.348 billion in revenue and $53.4 million in adjusted EBITDA, creating a higher earnings benchmark for the year ahead.

Fiscal 2027 guidance calls for revenue of $1.310–1.360 billion and adjusted EBITDA of $27–42 million, implying weaker profitability than the completed year. First-quarter revenue is expected to fall 4.1–5.6%. Management said a checkout problem had been corrected but would affect that quarter. The company still expects positive annual free cash flow, making the outlook mixed rather than uniformly negative.

Sources:

• Stitch Fix — quarterly and annual results, corporate release reprint