Stitch Fix returned to revenue growth in fiscal 2026, marking a milestone in the online styling retailer’s turnaround effort.
Customers spent more, while the company also pointed to growing adoption of its Vision AI tool.
For its fiscal 2026 ended Aug. 1, Stitch Fix generated $1.35 billion in net revenue, up 6.4% from $1.27 billion a year earlier. Its net loss narrowed to $12.6 million from $28.8 million in fiscal 2025. In Q4 alone, revenue rose 4.2% year over year to $324.4 million, marking Stitch Fix’s sixth consecutive quarter of positive revenue growth.
“Fiscal 2026 was a pivotal year for Stitch Fix,” CEO Matt Baer told analysts on the company’s Q4 earnings call. “We advanced our strategy and closed the year as a stronger, healthier business with a more resilient operating foundation and a reimagined client experience.”
The growth came despite a modest drop in active clients. Stitch Fix said it ended Q4 with roughly 2.28 million active clients, down 1.4% year over year. However, revenue per active client rose 7.8%, reaching a record $592.
At the same time, artificial intelligence (AI) is becoming a bigger part of Stitch Fix’s strategy. Baer highlighted growing adoption of the company’s Vision platform and discussed how Stitch Fix could one day participate in agentic shopping.
Stitch Fix is No. 78 in the Top 1000 Database. The market research tool tracks North America’s largest online retailers, ranking them by annual ecommerce sales and more.
Stitch Fix is also No. 183 in Digital Commerce 360’s new AI Rankings. That set of rankings is available in the Top 1000 Pro with AI Database.
Stitch Fix expands its AI-powered Vision tool
Baer said Stitch Fix’s 15 years of proprietary data and algorithms, paired with its human stylists, give the company a “foundation for incorporating AI across both the client experience and our operations.”
One of its most visible efforts is Stitch Fix Vision, the AI-powered style visualization tool the company launched a year ago. After customers upload photos through the app, Vision generates personalized images of them in curated outfits, with new looks added to their gallery each week.
Baer said Stitch Fix is integrating Vision more broadly across the shopping journey, letting customers see themselves in recommended looks from onboarding and Fix Preview through Freestyle and checkout.
A “fix” is Stitch Fix’s personalized shipment of clothing and accessories. Fix Preview lets customers review and change items before a Fix ships, while Freestyle lets them shop outside a scheduled shipment.
Customers who engage with Vision continue to show what Baer called a “significant lift” in 90-day Freestyle spending.
Since launch, Stitch Fix has shared more than 22 million Vision images with customers, Baer said.
More recently, Stitch Fix added See It On Me, an on-demand extension of Vision. Instead of waiting for new looks to appear in their gallery, customers browsing outfit suggestions in Freestyle can choose a look and see it rendered on their own likeness. Baer said Vision adoption has exceeded the company’s expectations. He added that See It On Me “helped considerably in terms of further expansion.”
Where Stitch Fix sees a role for AI shopping agents
Asked how Stitch Fix is positioning itself as AI reshapes shopping, Baer pointed to the company’s proprietary customer data as an advantage.
“At the end of the day, an AI experience, generative or agentic, the quality of that output is premised on the quality of the data that you put into it,” he said.
Baer also touched on the rise of agentic shopping, in which AI systems can take actions on a shopper’s behalf. Stitch Fix is “confident” it can participate in that shift, he said. He added that the company expects to serve either a human customer or an AI shopping agent. Baer did not provide details on how that would work.
Still, Baer argued that some purchases are better suited to automation than others.
“If I want to ensure my pantry is perpetually replenished with paper towels, that’s something I would happily outsource to my agentic shopper,” he said. Choosing clothes that fit, match someone’s style and budget and make them feel confident, he added, involves “a lot more nuance.”
That’s where Stitch Fix’s human stylists give it an advantage, he said.
“As more and more interactions for all consumers generally are taking place by AI, it is actually human connection (that) becomes the scarce resource,” Baer said.
At the same time, Stitch Fix is using AI behind the scenes to support employees. Generative AI tools now help stylists with item recommendations, he said. Meanwhile, AI assists with labor planning and real-time scheduling in its fulfillment centers. In customer service, AI agents handle more routine requests.
Baer said Stitch Fix has “more than doubled the share of chats resolved without requiring additional support.”
The company also recently hired Sree Sreedhararaj as chief product and technology officer. He previously served as chief technology officer at Ipsy. He oversaw an AI-powered personalization engine and agentic AI initiatives. Before that, he was chief technology officer at Sephora, where he led AI integration and personalization strategy, according to Stitch Fix’s announcement.
Stitch Fix customers spend more per client
Although Stitch Fix ended Q4 with fewer active clients than a year earlier, Baer said those trends continued to improve. The quarter marked the company’s ninth consecutive quarter of year-over-year improvement in its active-client growth rate, he said.
At the same time, customers are spending more, on average. Baer attributed that partly to larger fixes and a wider assortment. These have supported eight consecutive quarters of growth in both items purchased per fix and average unit retail. Average order value (AOV) was the primary driver of Stitch Fix’s Q4 revenue growth, he added.
Stitch Fix is also expanding into categories where it historically has had a smaller presence, including activewear, athleisure, footwear and accessories. In Q4, activewear and athleisure sales grew 21% year over year, while footwear sales increased 14%, Baer said.
Since the start of fiscal 2026, Stitch Fix has also added more than 80 brands, including Birkenstock, Outdoor Voices and FARM Rio, he noted, as it expands its mix of market brands alongside its private labels.
Stitch Fix flags a tougher consumer environment in revenue forecast
Stitch Fix executives also pointed to higher customer acquisition costs as a headwind to bringing in and reengaging clients. Chief financial officer David Aufderhaar said those costs remained elevated into the first quarter of fiscal 2027 and are expected to weigh on client and revenue growth.
At the same time, existing customers are becoming more selective about discretionary purchases outside their recurring Fixes, Aufderhaar said. The company began seeing that pressure late in Q4 and expects those trends to factor into its full-year outlook.
For its fiscal Q1 2027, Stitch Fix expects revenue of $323 million to $328 million.
For the full fiscal 2027, Stitch Fix expects revenue of $1.31 billion to $1.36 billion.
Aufderhaar said its fiscal 2027 EBITDA outlook also reflects planned investments in advertising and technology, including AI, to support longer-term growth.
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