Stitch Fix (SFIX) Stock Forecast & Price Target

Stitch Fix Inc is projecting revenue growth for FY26, with estimated sales between $1.28 billion and $1.33 billion, representing a year-over-year increase of 1% to 5%. In the first quarter of FY26, the company reported total revenue of $342 million, which exceeded consensus expectations and demonstrated a 7.3% increase from the previous year. The company's proactive strategy to enhance its merchandise mix and expand product offerings contributed to a significant rise in Average Order Value (AOV) by 7.6% year-over-year, indicating a positive response to its personalized service model.

Stitch Fix Inc has reported a decline in adjusted EBITDA margin, contracting to 3.9% in the first quarter, which represents a decrease of 30 basis points from the previous year. Additionally, the company experienced a 5.2% year-over-year decrease in active clients, resulting in a total of 2.307 million, indicating continued challenges in client retention. Furthermore, gross margins fell by 180 basis points to 43.6%, which was below both consensus expectations and prior forecasts, suggesting ongoing pressures on profitability.