Stitch Fix Shares Plunge After Cautious 2027 Guidance

Shares of Stitch Fix fell 18.41% to $2.301 in after-hours trading on September 23, 2026, after the company issued cautious financial guidance for fiscal 2027. Despite the market reaction, the company achieved its sixth straight quarter of revenue growth, reporting Q4 net revenue of $324.4 million and a record revenue per active client of $592. Full-year fiscal 2026 net revenue rose 6.4% to $1.35 billion.

Operational challenges persist as the active client base declined 1.4% year-over-year to 2.277 million. For fiscal 2027, the company expects net revenue between $1.31 billion and $1.36 billion, with adjusted EBITDA projected to drop to between $27 million and $42 million.

Management attributed the expected dip in profitability to strategic reinvestments in advertising and artificial intelligence, specifically the Stitch Fix Vision visualization tool. CEO Matt Baer described fiscal 2026 as a pivotal year for the company's turnaround, while CFO David Aufderhaar noted that without these additional investments, the EBITDA margin guide would have remained more consistent with the previous year's 4% range.