Stitch Fix reported its financial results for the second quarter of fiscal 2026, ending January 31 2026. Revenue rose 9.4% year‑over‑year to $341.3 million, surpassing the consensus estimate of $334.74 million by $6.56 million. The increase was driven by stronger demand across core apparel, footwear, and accessories categories, with active clients spending an average of $577 each, the highest revenue per active client on record.
The company posted a net loss of $2.7 million, a widening from the $2.4 million loss reported in the prior quarter. The loss was largely attributable to one‑time restructuring charges and an 11% rise in the cost of goods sold, which compressed gross margin from 44.6% to 43.6%. Gross margin contraction reflects higher inventory and shipping costs, while the company maintained a contribution margin above 30% for the eighth consecutive quarter, underscoring disciplined cost management.
Earnings per share were $-0.02, beating the consensus estimate of $-0.05 (and $-0.07 in some reports) by $0.03–$0.05. The narrower loss was driven by the company’s focus on scaling AI‑driven personalization and operational efficiencies that offset the impact of higher COGS and restructuring expenses.
Management updated its outlook, projecting Q3 net revenue of $330 million to $335 million and an adjusted EBITDA margin of 2.1% to 3.0%. For the full fiscal year, the company now expects net revenue of $1.33 billion to $1.35 billion and an adjusted EBITDA margin of 3.2% to 3.7%. The upward revision reflects confidence in continued revenue growth from higher average order values and a leaner cost structure.
CEO Matt Baer said, “We delivered a strong Q2 with 9.4% revenue growth year over year. Our client experience enhancements, improvements to the quality and breadth of our assortment, and new AI features are resonating and driving increased client engagement.” CFO David Aufderhaar added, “Revenue per active client reached $577 in Q2, our highest revenue per active client as a public company.”
Investors responded positively to the results, citing the revenue and EPS beats, the raised full‑year guidance, and the record revenue per active client as key drivers of confidence in Stitch Fix’s strategy.
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