Stitch Fix Reports 4.7% Revenue Growth to $340.3 Million in Q3 Fiscal 2026

Stitch Fix, Inc. reported its financial results for the third quarter of fiscal 2026, revealing a net revenue of $340.3 million, a 4.7% increase from $325.0 million in the same period last year. For the nine months ending May 2, 2026, revenue reached $1.02 billion, up 7.1% from $955.9 million in the prior year. The company experienced a net loss from continuing operations of $1.5 million for the quarter, significantly improved from a loss of $7.4 million in the same quarter of the previous year. For the nine-month period, the net loss was $10.5 million, compared to a loss of $20.3 million in the prior year.

The company noted a decrease in active clients, with approximately 2.31 million as of May 2, 2026, down 1.9% from 2.35 million a year earlier. This decline was attributed to challenges in client acquisition and retention, despite an increase in net revenue per active client, which rose by 6.6% year-over-year. The increase in revenue per client was driven by higher average order values and an increase in the number of items kept per Fix. The company anticipates that broader macroeconomic conditions may continue to impact consumer discretionary spending, but expects positive trends in order values to mitigate the effects of lower active client counts.

Stitch Fix's operational metrics showed a gross profit of $148.8 million for the quarter, with a gross margin of 43.7%, slightly down from 44.2% in the previous year. The decrease in gross margin was primarily due to rising transportation costs, although improvements in inventory management helped offset some of these pressures. Selling, general, and administrative expenses (SG&A) were $152.9 million for the quarter, a marginal decrease from $153.3 million a year ago, reflecting lower compensation and benefits expenses, partially offset by increased advertising costs.

In terms of strategic developments, Stitch Fix repurchased 4.5 million shares of its Class A common stock during the quarter, with a total of 6.8 million shares repurchased since the program's inception in January 2022. The company has $104.9 million remaining under its share repurchase authorization. Looking ahead, Stitch Fix remains focused on enhancing client retention, improving conversion rates for new visitors, and leveraging data science to optimize inventory and client experiences. The company believes its existing cash and cash equivalents, along with its credit facility, will be sufficient to meet its operational needs for at least the next 12 months.