Sees Q2 Adjusted EBITDA of $10M-$13M

Consumer Discretionary Sector Performance: The Consumer Discretionary Select Sector SPDR ETF rose by 1%, making it the top-performing sector among the 11 S&P groups last week.

Weakness in Major Holdings: Despite the sector's overall gain, major holdings like Home Depot and Nike saw declines of 4% and 13%, respectively.

Nike's Notable Decline: Nike's 13% drop represents its worst weekly performance since late June 2024, indicating ongoing challenges in the athletic apparel market.

Adidas Struggles: Adidas is also facing difficulties, currently trading 30% below its most recent 52-week high.

AOV Growth: Stitch Fix reported a 9.6% year-over-year increase in Average Order Value (AOV) for fiscal Q1 2026, marking nine consecutive quarters of growth, driven by larger basket sizes and a focus on high-demand categories like footwear and denim.

Revenue per Active Client: Revenue per active client (RPAC) rose 5.3% year-over-year to $559, reflecting increased client engagement and deeper wallet share rather than just customer acquisition.

AI and Personalization: The company's AI-powered tools, such as Stitch Fix Vision and the AI Style Assistant, enhance customer experience and decision-making, contributing to higher transaction values and loyalty.

Stock Performance and Valuation: Stitch Fix shares have increased by 30.4% year-to-date, while trading at a forward price-to-sales ratio of 0.56X, significantly lower than the industry average, and currently holds a Zacks Rank of #2 (Buy).