Stitch Fix said fiscal 2026 revenue rose 6.4% to $1.35 billion, with fourth-quarter sales up 4.2% to $324.4 million. For fiscal 2027, it forecasts revenue of $1.31 billion to $1.36 billion and adjusted EBITDA of $27 million to $42 million.
Management attributed the fiscal 2027 outlook to a tougher consumer environment, higher client-acquisition costs and clients being more selective with discretionary purchases outside recurring fixes. First-quarter revenue is forecast at $323 million to $328 million; lower expected fix volume reflects shipments shifted from Q1 into Q4 and an August post-checkout change that reduced eligibility for another fix. Stitch Fix said the change was corrected and both effects are limited to Q1.
Stitch Fix ended Q4 with 2.277 million active clients, down 1.4% year over year. For FY26, adjusted EBITDA margin was 4%, free cash flow was $19.8 million, and the company ended the year with $220.9 million in cash, equivalents and investments and no debt. It expects FY27 gross margin of 43%-44% and stronger positive free cash flow; planned advertising and technology investments, including AI, are reflected in its adjusted EBITDA outlook.
