American online personal styling service Stitch Fix, Inc has reported net revenue of $341.3 million in the second quarter (Q2) of fiscal 2026 (FY26) ended January 31, 2026, marking a 9.4 per cent year-on-year (YoY) increase as the company benefited from stronger client engagement and improved product assortment.
During the quarter, active clients totalled 2.29 million, reflecting a 0.8 per cent decline quarter on quarter (QoQ) and a 3.5 per cent decrease YoY. However, net revenue per active client rose 7.4 per cent YoY to $577, indicating higher spending levels among existing customers.
The company reported a gross margin of 43.6 per cent, down 90 basis points YoY, while net loss narrowed to $2.7 million, translating into a net loss margin of 0.8 per cent and a diluted loss per share of $0.02. Meanwhile, adjusted EBITDA reached $15.9 million, representing a 4.7 per cent margin, Stitch Fix said in a press release.
Operational performance also reflected stable liquidity. Net cash from operating activities stood at $7.3 million, while free cash flow totalled $3.4 million during the quarter. The company ended the period with cash, cash equivalents and investments of $240.5 million and no outstanding debt.
For the third quarter (Q3) of fiscal 2026 FY26) ending May 2, 2026, Stitch Fix expects net revenue between $330 million and $335 million, representing 1.5 per cent to 3.1 per cent YoY growth. The company projects adjusted EBITDA between $7 million and $10 million, with a margin of 2.1 per cent to 3 per cent.
“Our client experience enhancements, improvements to the quality and breadth of our assortment, and new AI features are resonating and driving increased client engagement,” said Matt Baer, CEO of Stitch Fix. “We delivered a strong Q2 with 9.4 per cent revenue growth year over year. We are gaining market share and strengthening our role as our clients’ retailer of choice for apparel, footwear and accessories as we remain focused on offering the most client-centric and personalised shopping experience in apparel retail.”
Looking ahead to the fiscal 2026 (FY26), Stitch Fix forecasts net revenue in the range of $1.33 billion to $1.35 billion, reflecting 5 per cent to 6.5 per cent YoY growth. The company expects adjusted EBITDA between $42 million and $50 million, corresponding to a margin of 3.2 per cent to 3.7 per cent.
The company also expects gross margin between 43 per cent and 44 per cent in FY26, while advertising expenses are projected at 9 per cent to 10 per cent of revenue. Stitch Fix anticipates positive free cash flow for the full fiscal.
Fibre2Fashion News Desk (SG)
Disclaimer : This story is auto aggregated by a computer programme and has not been created or edited by DOWNTHENEWS. Publisher: feeds.feedburner.com
