BIRD Overview

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).

Strong Financial Performance: Five Below, Inc. reported third-quarter fiscal 2025 results with net sales of $1.04 billion, a 23.1% year-over-year increase, and adjusted earnings per share of 68 cents, significantly surpassing estimates and reflecting a 61.9% increase from the previous year.

Operational Momentum and Expansion: The company experienced solid operational momentum driven by increased customer traffic, successful store openings, and enhanced in-store experiences, leading to a 14.3% growth in comparable sales.

Updated Fiscal Outlook: Five Below raised its fiscal 2025 outlook, projecting net sales between $4.62-$4.65 billion and adjusted earnings per share of $5.51-$5.69, indicating stronger anticipated performance and growth compared to previous estimates.

Store Growth Plans: The company plans to open 150 new stores by the end of fiscal 2025, increasing its total to 1,921 stores, while also investing $200 million in capital expenditures to support these expansions and system upgrades.