Stitch Fix reported a narrower-than-expected Q4 adjusted loss and revenue growth, with revenue per active client reaching a record $592. However, active client count declined 1.4%, and management expects a more challenging consumer environment and higher acquisition costs in fiscal 2027.
The company issued guidance reflecting expected revenue decline of 2.8% to potential growth of 0.9%, with significantly lower adjusted EBITDA projections. Analysts have downward trending estimates, resulting in a Zacks Rank #4 (Sell) rating.