Stitch Fix opened its fiscal 2026 year reporting a 7.8% increase in Revenue per Active Client (RPAC) and a 4.9% rise in Average Order Value (AOV) compared with the prior-year quarter. The company attributed the gains to its revamped styling algorithm and expanded curated assortments, which have driven deeper client engagement. Active client count rose by 6.3% to 3.1 million, while repeat purchase rates climbed 320 basis points. Management highlighted that personalized recommendations now account for more than 65% of total orders, up from 58% a year ago, signaling stronger wallet share among its core membership base.

Zacks recently upgraded Stitch Fix to a Rank #2 (Buy), citing growing confidence in the retailer’s ability to sustain margin expansion and profitable growth. Since the beginning of the fiscal year, consensus full-year Adjusted EPS estimates have been revised upward by 12%, driven by lower logistics costs and higher client retention. Analysts point to a 180-basis-point improvement in gross margin in the quarter, backed by optimized inventory management and a shift toward higher-margin styling fees. Consensus revenue forecasts call for 15% year-over-year growth in fiscal 2026, a marked acceleration from the 9% growth achieved in the prior year.