Stitch Fix plunges after downbeat revenue forecast
SFIX•Stitch Fix forecast first-quarter revenue of $323 million to $328 million, below analysts’ estimate of $343.2 million, and reported fourth-quarter revenue of $324.4 million, missing estimates of $325.6 million.
1. Revenue outlook misses estimates
Stitch Fix shares fell as much as 25.18% to $2.11 after the online personal styling service forecast first-quarter revenue of $323 million to $328 million, below analysts’ estimate of $343.2 million. The company said client acquisition and retention challenges are weighing on growth.
2. Fourth-quarter results
The company reported fourth-quarter revenue of $324.4 million, below estimates of $325.6 million. Analyst David Bellinger said the results put the company’s turnaround progress at an impasse and cited consumer strain and uncertainty about a near-term return to positive customer growth.
3. GLP-1 customer opportunity
Stitch Fix highlighted an opportunity to tailor services to customers whose needs change with weight loss, saying roughly 20% of its new clients use GLP-1 medications. Shares were set for their worst day since December 2024 if losses held; they were down 46.3% year to date through the previous session.
