Stitch Fix Q4 revenue slightly misses estimates as active clients decline
Overview
US online personal styling service's Q4 revenue grew 4.2% yr/yr, slightly missed analyst expectations
Q4 adjusted EBITDA beat analyst expectations, reflecting improved operating efficiency
Company repurchased 2.7 mln shares for $11.3 mln in Q4
Shares of the company were down about 19% in extended trading
Outlook
Company sees Q1 2027 net revenue of $323 mln to $328 mln, down 5.6% to 4.1% YoY
Stitch Fix expects FY 2027 net revenue of $1.310 bln to $1.360 bln, down 2.8% to up 0.9% YoY
Company expects FY 2027 gross margin between 43% and 44% and positive free cash flow
Result Drivers
CLIENT ENGAGEMENT - Net revenue per active client rose 7.8% yr/yr, indicating increased client spending or engagement
ACTIVE CLIENT DECLINE - Active clients fell 1.4% quarter-over-quarter and year-over-year, reflecting challenges in client acquisition or retention
TRANSFORMATION EFFORTS - CEO said performance was supported by a reimagined client experience and more compelling assortment
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue | Slight Miss* | $324.40 mln | $325.60 mln (5 Analysts) |
Q4 Loss Per Share | $0.02 | ||
Q4 Net Loss | $2.10 mln | ||
Q4 Adjusted EBITDA | Beat | $10.80 mln | $7.94 mln (5 Analysts) |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy."
Wall Street's median 12-month price target for Stitch Fix, Inc. is $5.00, about 67.2% above its September 22 closing price of $2.99
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)