Stitch Fix Guides Fiscal 2027 Revenue Lower
The online styling service now sees full-year 2027 net revenue of $1.310 billion to $1.360 billion, a 2.8% decline to 0.9% increase, after 6.4% growth in fiscal 2026.
Stitch Fix, Inc. (SFIX), the online personal styling service, guided fiscal 2027 net revenue to $1.310 billion to $1.360 billion, a 2.8% decline to a 0.9% increase from the year-earlier year, after 6.4% growth in fiscal 2026.
The 2027 outlook reflects a more challenging consumer environment and a lower active-client starting point that is expected to temper revenue growth. Adjusted EBITDA for the full year is guided at $27 million to $42 million, or a 2.1% to 3.1% margin. Gross margin for fiscal 2027 is expected between 43% and 44%, and positive free cash flow is expected for the year.
Fourth-quarter net revenue was $324.4 million, up 4.2% from a year earlier, after 4.7% year-over-year growth in the third quarter and 9.4% growth two quarters earlier. The deceleration marked a break from the run of accelerating year-over-year sales that had defined the first half of the year. The company continued to gain share in the U.S. apparel, footwear and accessories market, and full-year revenue grew 6.4%.
Active clients were 2.277 million, down 1.4% from the prior quarter, reversing a 0.9% sequential increase in the third quarter. Net revenue per active client rose to $592, up 7.8% from a year earlier, after 6.6% year-over-year growth in the prior quarter. Gross margin in the quarter was 43.6%, flat year-over-year, after a 50-basis-point year-over-year decline in the third quarter.
The company reported a net loss of $2.1 million, or $0.02 a share, versus a $1.5 million loss, or $0.01 a share, in the third quarter. Adjusted EBITDA was $10.8 million, or a 3.3% margin, down from $13.2 million and a 3.9% margin in the prior quarter. Operating cash flow was $9.1 million and free cash flow was $4.4 million. Stitch Fix repurchased 2.7 million Class A shares for $11.3 million.
For the full fiscal year ended August 1, 2026, net revenue was $1,348.1 million. Gross profit was $588.5 million and gross margin was 43.7%, down 70 basis points from the year-earlier year. Adjusted EBITDA for the year was $53.4 million, or a 4.0% margin, and free cash flow was $19.8 million. Cash, cash equivalents, and investments were $220.9 million, with no debt.
First-quarter fiscal 2027 revenue is guided at $323 million to $328 million, a 5.6% decline to a 4.1% increase from the year-earlier quarter. Adjusted EBITDA for that quarter is guided at $3 million to $6 million, or a 0.9% to 1.8% margin. First-quarter Fix volume was reduced by two factors: a decision to shift some Fix shipments from the first quarter of fiscal 2027 into the fourth quarter of fiscal 2026, and an unintended August change to the post-checkout offer flow that limited the number of clients eligible to request another Fix. The offer-flow change has been corrected and will not affect results beyond the first quarter.
Chief Executive Officer Matt Baer said fiscal 2026 was a transformative year and that the company closed the year as a significantly healthier business, with a strengthened operating foundation, a reimagined client experience and a more compelling assortment. He said the company remains confident in its transformation strategy as it navigates a challenging consumer environment. The adjusted EBITDA outlook for fiscal 2027 reflects strategic investments in advertising and technology, including artificial intelligence, to support long-term growth.
The company’s fiscal year is a 52- or 53-week period ending on the Saturday closest to July 31. Fiscal years 2025 and 2026 were 52-week years.