Stitch Fix Reports Q1 Revenue of $342.1M
Reports Q1 revenue $342.1M, consensus $336.7M. "Q1 was a strong start to the fiscal year-we accelerated year-over-year revenue growth to 7.3% and captured considerable market share gains," said Matt Baer, CEO, Stitch Fix. "As a result of the successful execution of our transformation strategy, we are increasingly becoming the retailer of choice for more of our clients' apparel and accessories needs. We are doing this by leveraging the latest in GenAI technology, the expertise of our human Stylists, and our assortment of leading brands to deliver the most client-centric and personalized shopping experience."
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AI-Powered Personalization Boosts SFIX's Increasing AOV and RPAC in Early FY26
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).
