Stitch Fix shares fell 3.1% after Telsey analyst lowered the price target to $5.00 from $6.00, maintaining a Market Perform rating. The downgrade cited challenging economic conditions and uncertain client growth prospects. The move followed Stitch Fix's fourth-quarter results, which showed revenue up 9.4% year-over-year but active clients down 3.5%. Whilst recent revenue exceeded expectations, the analyst expressed concern about the company's ability to add customers and achieve future profitability. Stitch Fix shares have experienced significant volatility, with 44 moves greater than 5% over the past year. The stock is down 33.9% year-to-date and trading 41.9% below its 52-week high of $5.83.

Stitch Fix reported $341.3 million in revenue for Q2 2026, up 9.4% year-over-year, exceeding expectations. Revenue per active client reached $577, a 7.4% increase and the highest since going public. The online personal styling service achieved adjusted EBITDA of $15.9 million, or 4.7% of revenue, whilst maintaining a contribution margin above 30% for eight consecutive quarters. Active clients numbered 2.3 million, with the company holding $240.5 million in cash and investments and no debt. Stitch Fix issued full-year revenue guidance of $1.33 billion to $1.35 billion, with adjusted EBITDA projected at $42 million to $50 million. Strong demand in activewear, athleisure, footwear and accessories drove growth, though the company cautioned about potential macroeconomic headwinds and challenging year-over-year comparisons ahead.

Stitch Fix, a personalised clothing company, reported fourth-quarter revenue of $341.3 million, up 9.4% year on year and beating analyst estimates by 1.7%. The company's GAAP loss of $0.02 per share came in 60.9% better than expected. However, next quarter's revenue guidance of $332.5 million fell 0.6% below analyst estimates. Adjusted EBITDA reached $15.93 million, exceeding expectations by 43.5%. The company lifted its full-year revenue guidance to $1.34 billion and raised EBITDA guidance to $46 million, above the $42.27 million analyst consensus. Active clients declined to 2.29 million, down 83,000 year on year. Free cash flow improved to $3.35 million from negative $19.44 million in the same quarter last year.