Stitch Fix (SFIX) Stock Forecast & Price Target

Stitch Fix Inc. anticipates a revenue range of $1.28 billion to $1.33 billion for FY26, reflecting a year-over-year growth of 1% to 5%, and an encouraging quarterly revenue guidance of $333 million to $338 million, indicating a 4.4% to 6.0% increase year-over-year. The company demonstrated stronger-than-expected performance in the first quarter, achieving a total revenue rise of 7.3% to $342 million, surpassing market consensus. Additionally, the average order value (AOV) increased by 7.6% year-over-year, driven by a refreshed merchandise mix that resonates with trends and an expansion in product offerings, further supporting a positive financial outlook.

Stitch Fix Inc has experienced a decline in its financial performance, highlighted by a contraction in adjusted EBITDA margin to 3.9%, representing a 30 basis points decrease from the previous year. The company reported a 5.2% year-over-year decline in active clients, totaling 2.307 million, which has negatively impacted its overall revenue growth despite a slight increase in revenue per client. Furthermore, the gross margin has decreased by 180 basis points to 43.6%, falling short of both consensus expectations and the company’s own forecasts, indicating ongoing challenges in maintaining profitability.