Core Insights - Stitch Fix, Inc. has launched Stitch Fix Vision, a generative AI-powered tool aimed at enhancing client experiences in fashion discovery and personalization [1][9] - The tool allows users to upload photos and visualize themselves in curated outfits, integrating advanced AI with stylist creativity for a personalized shopping experience [2][3] Product Features - Clients can upload selfies and full-length photos to receive realistic images of themselves styled in customized outfits, which are fully shoppable [3][9] - Vision offers ready-to-shop looks and weekly inspiration through a personalized gallery, making shopping effortless and enjoyable [4][9] Additional Enhancements - Alongside Vision, Stitch Fix is introducing Stylist Connect for direct client-stylist communication and Family Accounts for household styling [5][9] - The company is also launching new themed collections and expanding brand offerings as part of its holiday lineup [5] Financial Performance - Stitch Fix shares have increased by 49.8% over the past six months, outperforming the industry growth of 39.1% [6] - The company trades at a forward price-to-sales ratio of 0.42X, significantly lower than the industry average of 1.85X, indicating potential value [7]

Core Viewpoint - Stitch Fix (SFIX) has experienced a significant decline of 21.9% over the past four weeks, but it is now in oversold territory, indicating a potential trend reversal as analysts expect better earnings than previously predicted [1]. Technical Analysis - The Relative Strength Index (RSI) is a momentum oscillator that helps identify whether a stock is oversold, with readings below 30 indicating oversold conditions [2]. - SFIX's current RSI reading is 28.41, suggesting that the heavy selling pressure may be exhausting itself, leading to a possible reversal towards a previous equilibrium of supply and demand [5]. Fundamental Indicators - There is a strong consensus among sell-side analysts regarding an increase in earnings estimates for SFIX, with a 19.2% rise in the consensus EPS estimate over the last 30 days, which typically correlates with price appreciation [7]. - SFIX holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, indicating a strong potential for a near-term turnaround [8].

Core Viewpoint - Opendoor Technologies has gained significant attention as a meme stock, experiencing a dramatic rise from a low of $0.51 in June, driven by retail investor interest and hopes for recovery [1][2] Company Overview: Opendoor Technologies - The stock has increased over 1,500% from its June low, but has faced declines recently [2] Company Overview: Stitch Fix - Stitch Fix is seen as a potential turnaround stock, having previously been a promising player in retail apparel but currently facing challenges [3][6] - The company utilizes AI algorithms to personalize clothing selections for clients, offering a unique shopping experience [5] - Despite initial success during the COVID-19 pandemic, growth has stagnated, and the company has struggled to regain momentum [6] Financial Performance: Stitch Fix - For the fiscal fourth quarter of 2025, Stitch Fix reported an 8% decrease in active clients, which is critical for future growth [10] - The company has no debt, providing some financial stability [9] - Revenue adjusted for an extra week increased by 4.4% year over year, with revenue per active client (RPAC) rising 3% to $549 [15] - Average order value for fixes increased by 12% year over year, marking the eighth consecutive quarter of growth [15] - Loss per share improved to $0.07 from $0.29 the previous year [15] Market Environment - The retail environment is challenging, with consumers reducing discretionary spending, complicating the company's recovery efforts [11] - Management is implementing changes to align with consumer demand, including adding new categories and leveraging AI capabilities [13] Investment Sentiment - Despite a stock drop following fourth-quarter results, Stitch Fix's stock is up 9% this year, but it trades at a low price-to-sales ratio of 0.5, indicating potential value traps [14] - There is speculation that retail investors could rally around Stitch Fix similar to Opendoor, but caution is advised until there are signs of improvement [12][14]

Core Viewpoint - Stitch Fix (SFIX) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based on changes in a company's earnings picture, which is crucial for predicting near-term stock price movements [2][4]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Stitch Fix's Earnings Outlook - The recent upgrade for Stitch Fix reflects an improvement in its underlying business, which is expected to drive the stock price higher as investors respond positively to this trend [5]. - Over the past three months, the Zacks Consensus Estimate for Stitch Fix has increased by 19.2%, indicating a positive revision in earnings expectations [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have generated an average annual return of +25% since 1988 [7]. - The upgrade of Stitch Fix to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [10].

Core Insights - Stitch Fix, Inc. (SFIX) closed fiscal 2025 with positive momentum, evidenced by a 3% year-over-year increase in revenue per active client (RPAC) to $549, marking the sixth consecutive quarter of growth [1][9] - The integration of artificial intelligence (AI) has been pivotal in enhancing client engagement and driving order frequency through tools like the AI Style Assistant and Vision [2][6] - The company anticipates fiscal 2026 revenues between $1.28 billion and $1.33 billion, reflecting a 1-5% increase from the previous year, with expected net revenues for Q1 fiscal 2026 between $333 million and $338 million, indicating year-over-year growth of 4.4-6% [5][9] AI Integration and Client Engagement - AI tools have transformed product assortment by analyzing billions of client interactions, allowing Stitch Fix to identify emerging trends and accelerate private brand development, which contributes to RPAC growth [3][6] - The introduction of Stylist Connect and Family Accounts is expected to enhance household engagement and spending in fiscal 2026 [4] Financial Performance and Valuation - Stitch Fix shares have increased by 9.3% year-to-date, contrasting with a 7.3% decline in the industry [7] - The company trades at a forward price-to-sales ratio of 0.49X, significantly lower than the industry average of 1.90X, and holds a Value Score of B [8]

Core Insights - Stitch Fix aims to enhance its customer experience (CX) to capture market share from underperforming retailers, focusing on a personalized shopping experience [3] - Despite a decline in client growth, Stitch Fix has seen improvements over the last five quarters due to better client acquisition strategies and experience enhancements [3] - The company's net revenue decreased by 2.6% year over year to $311.2 million, but adjusted for an extra week in Q4 2024, it increased by 4.4% [4] Client Experience and Technology - Stitch Fix has introduced a blend of AI and human-led experiences, including an AI style assistant that provides outfit inspiration based on customer data [4] - The Stylist Connect feature allows customers to communicate with stylists for advice, receiving positive feedback and higher order values from early users [5][6] - The company plans to further enhance its CX with a tool called Vision, which utilizes generative AI to create personalized outfit recommendations [7] Client Metrics - Net revenue per active client increased by 3% year over year, but the number of active clients fell by 1.9% quarter over quarter and 7.9% year over year to 2.3 million [7]

Core Viewpoint - Stitch Fix's fiscal 2025 ended on a disappointing note despite some positive financial metrics, leading to a significant drop in stock value following the earnings report [1][2]. Financial Performance - For the fiscal fourth quarter of 2025, Stitch Fix reported a net revenue increase of 4% year over year, reaching slightly over $311 million, after adjusting for an extra week in the same period of 2024 [3]. - The GAAP net loss narrowed to under $8.6 million, or $0.07 per share, compared to a loss of more than $36 million in the previous year [3]. - Both revenue and net loss figures exceeded consensus analyst estimates, which were less than $305 million for revenue and a net loss per share of $0.10 [5]. Subscriber Metrics - The company's core service, the Fix, relies heavily on subscriber numbers, which are critical for growth [6]. - Active client count was reported at slightly more than 2.3 million for the quarter, reflecting a concerning decrease of nearly 8% year over year [7][8].

[PART I](index=5&type=section&id=Part%20I) [ITEM 1. BUSINESS.](index=5&type=section&id=ITEM%201.%20BUSINESS.) Stitch Fix offers personalized online styling through AI and expert stylists, providing curated shipments and direct purchases - Stitch Fix operates as an online personal styling service, integrating expert Stylists with AI and recommendation algorithms to offer personalized clothing and accessories[14](index=14&type=chunk)[17](index=17&type=chunk) - Clients engage through two main models: **'Fixes'** (curated shipments) and **'Freestyle'** (direct purchases from personalized online assortments)[18](index=18&type=chunk)[23](index=23&type=chunk)[29](index=29&type=chunk) - The company's business is powered by **AI and data science**, utilizing a large, growing client-provided data set to enhance personalization and operational efficiency[19](index=19&type=chunk)[30](index=30&type=chunk)[34](index=34&type=chunk) Active Clients | Metric | As of August 2, 2025 | As of August 3, 2024 | | :----- | :------------------- | :------------------- | | Active Clients | 2,309,000 | 2,508,000 | - Stitch Fix expanded its assortment to include Men's, Kids, Petite, Maternity, and Plus apparel, along with shoes and accessories, from brand partners and private labels[20](index=20&type=chunk) - The company ceased its **UK business operations in fiscal 2024**, now operating solely in the United States[59](index=59&type=chunk)[305](index=305&type=chunk) [ITEM 1A. RISK FACTORS](index=10&type=section&id=ITEM%201A.%20RISK%20FACTORS) The company faces significant risks in client retention, consumer spending, competition, operations, cybersecurity, and legal and financial areas - The company faces significant risks in client retention and acquisition, with **active clients decreasing year-over-year**[73](index=73&type=chunk)[74](index=74&type=chunk)[75](index=75&type=chunk) - Operational risks include ineffective inventory management, constraints at **three U.S. fulfillment centers**, and shipping disruptions[87](index=87&type=chunk)[92](index=92&type=chunk)[94](index=94&type=chunk)[96](index=96&type=chunk) - Revenue growth has declined in recent fiscal years (**5.3% in FY2025**, **16.0% in FY2024**, **21.1% in FY2023**), with uncertain future profitability despite restructuring[97](index=97&type=chunk)[98](index=98&type=chunk) - The business is highly susceptible to macroeconomic conditions like inflation, recessionary concerns, and trade policies, impacting consumer spending and merchandise costs[77](index=77&type=chunk)[78](index=78&type=chunk)[118](index=118&type=chunk)[120](index=120&type=chunk) - Cybersecurity threats, evolving privacy laws (e.g., CCPA/CPRA), and e-commerce regulations pose significant legal and operational risks, potentially causing expenses, liability, and reputational harm[129](index=129&type=chunk)[140](index=140&type=chunk)[145](index=145&type=chunk) - The **Class A common stock market price is volatile**, influenced by operating results, analyst expectations, and broader market trends, with potential decline from future share sales or dual-class structure[158](index=158&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk) [ITEM 1B. UNRESOLVED STAFF COMMENTS.](index=34&type=section&id=ITEM%201B.%20UNRESOLVED%20STAFF%20COMMENTS.) The company reported no unresolved staff comments from the SEC - No unresolved staff comments were reported[185](index=185&type=chunk) [ITEM 1C. CYBERSECURITY.](index=34&type=section&id=ITEM%201C.%20CYBERSECURITY.) Stitch Fix employs a comprehensive cybersecurity strategy, overseen by the CISO and Audit Committee, covering risk management, training, and incident response - Stitch Fix employs a multi-pronged cybersecurity strategy focused on prevention, detection, and response to manage risks to its Information Systems and Data[188](index=188&type=chunk) - The cybersecurity program includes regular risk assessments, third-party risk management, and mandatory employee awareness and training[189](index=189&type=chunk)[190](index=190&type=chunk) - Cybersecurity governance is led by the **CISO**, reporting to the CPTO and chairing the Cybersecurity Governance Committee, with Audit Committee oversight and regular updates[193](index=193&type=chunk)[194](index=194&type=chunk)[196](index=196&type=chunk) - Despite no material cybersecurity breach, the company acknowledges the ongoing risk of future threats or incidents[197](index=197&type=chunk) [ITEM 2. PROPERTIES.](index=36&type=section&id=ITEM%202.%20PROPERTIES.) Stitch Fix leases its San Francisco headquarters and operates three US fulfillment centers, while subleasing a former Salt Lake City facility - Stitch Fix leases approximately **134,000 square feet** for its San Francisco headquarters, with **38,000 square feet utilized** and **58,000 square feet marketed for sublease**[199](index=199&type=chunk) - The company operates **three fulfillment centers** in Arizona, Indiana, and Georgia, totaling approximately **2,514,000 square feet**[200](index=200&type=chunk) - Stitch Fix subleases approximately **1,012,000 square feet** at its former Salt Lake City, Utah fulfillment center[200](index=200&type=chunk) [ITEM 3. LEGAL PROCEEDINGS.](index=36&type=section&id=ITEM%203.%20LEGAL%20PROCEEDINGS.) Stitch Fix is involved in a Securities Class Action lawsuit regarding its Freestyle offering, with motions to dismiss filed and no material financial impact expected - Stitch Fix is a defendant in a **Securities Class Action lawsuit** and related derivative actions concerning its Freestyle offering between June 2020 and June 2022[159](index=159&type=chunk)[364](index=364&type=chunk)[366](index=366&type=chunk)[367](index=367&type=chunk) - Motions to dismiss have been filed by the company, with some granted in part, and the lawsuits remain pending[364](index=364&type=chunk)[365](index=365&type=chunk)[367](index=367&type=chunk) - The company records loss contingencies when probable and estimable, but does not anticipate a material impact on operating results, financial position, or cash flows from current legal actions[363](index=363&type=chunk) [ITEM 4. MINE SAFETY DISCLOSURES.](index=36&type=section&id=ITEM%204.%20MINE%20SAFETY%20DISCLOSURES.) This item is not applicable to Stitch Fix, Inc - Not applicable[203](index=203&type=chunk) [PART II](index=37&type=section&id=Part%20II) [ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.](index=37&type=section&id=ITEM%205.%20MARKET%20FOR%20REGISTRANT%27S%20COMMON%20EQUITY,%20RELATED%20STOCKHOLDER%20MATTERS%20AND%20ISSUER%20PURCHASES%20OF%20EQUITY%20SECURITIES.) Stitch Fix Class A common stock trades on Nasdaq; the company does not pay dividends and has an authorized $150.0 million share repurchase program with $120.0 million remaining - **Class A common stock (SFIX)** is listed on Nasdaq Global Select Market; Class B common stock is not publicly traded[206](index=206&type=chunk) - As of September 19, 2025, there were **37 record holders for Class A common stock** and **10 for Class B common stock**[207](index=207&type=chunk) - The company has never declared or paid cash dividends and does not anticipate doing so, intending to retain earnings for business operations and expansion[208](index=208&type=chunk)[165](index=165&type=chunk) - A **$150.0 million share repurchase program** was authorized in January 2022, with **$120.0 million remaining available** as of August 2, 2025, and no repurchases in fiscal 2024 or 2025[213](index=213&type=chunk)[259](index=259&type=chunk)[401](index=401&type=chunk)[402](index=402&type=chunk) [ITEM 6. [RESERVED]](index=38&type=section&id=ITEM%206.%20%5BRESERVED%5D) This item is reserved and not applicable - Not applicable[214](index=214&type=chunk) [ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=39&type=section&id=ITEM%207.%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Fiscal 2025 revenue decreased 5.3% due to client declines, but net loss from continuing operations significantly reduced by 75.7% to $28.8 million due to restructuring Fiscal Year 2025 Financial Highlights (Continuing Operations) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | YoY Change | | :----------------------------------- | :-------------------- | :-------------------- | :--------- | | Revenue, net | $1,267,171 | $1,337,468 | (5.3)% | | Net loss from continuing operations | $(28,844) | $(118,885) | (75.7)% | | Active Clients | 2,309 | 2,508 | (7.9)% | | Net Revenue per Active Client | $549 | $533 | 3.0% | | Selling, general, and administrative expenses | $601,844 | $725,465 | (17.0)% | - The decline in revenue was primarily due to a **7.9% decrease in active clients**, partially offset by higher average order values and more items kept per Fix[249](index=249&type=chunk) - Gross margin for fiscal 2025 increased by **10 basis points**, driven by higher average order values and transportation leverage, despite lower product margins[250](index=250&type=chunk) - SG&A expenses decreased significantly by **$123.6 million (17.0%)**, primarily due to lower compensation, benefits, facilities, and depreciation costs from restructuring[251](index=251&type=chunk)[252](index=252&type=chunk) - The company recorded **$1.2 million in additional restructuring charges** in fiscal 2025, with no further cash charges expected from the 2022 Restructuring Plan[224](index=224&type=chunk)[407](index=407&type=chunk) Non-GAAP Financial Measures (Continuing Operations) | Metric | FY2025 (in thousands) | FY2024 (in thousands) | | :------------- | :-------------------- | :-------------------- | | Adjusted EBITDA | $49,139 | $29,281 | | Free Cash Flow | $9,282 | $14,242 | - Cash and cash equivalents stood at **$114.0 million**, with **$128.8 million in investments** as of August 2, 2025, and a **$50.0 million revolving credit facility** with **$31.3 million excess availability**[255](index=255&type=chunk)[256](index=256&type=chunk) [ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=49&type=section&id=ITEM%207A.%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) The company faces market risks from interest rate fluctuations on investments and inflation impacting costs and consumer spending - The company's cash equivalents and investments are exposed to interest rate risk, but the short-term nature of the portfolio limits material impact from immediate rate changes[279](index=279&type=chunk) - Stitch Fix is subject to inflation risk, impacting merchandise, shipping, and labor costs, and adversely affecting consumer discretionary spending and net revenue[280](index=280&type=chunk) [ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA](index=50&type=section&id=ITEM%208.%20FINANCIAL%20STATEMENTS%20AND%20SUPPLEMENTARY%20DATA) This section presents audited consolidated financial statements for fiscal years 2023-2025, prepared under GAAP, with detailed notes on accounting policies and financial items - The consolidated financial statements for fiscal years ended August 2, 2025, August 3, 2024, and July 29, 2023, are presented in accordance with **GAAP**[284](index=284&type=chunk)[285](index=285&type=chunk)[306](index=306&type=chunk) - The report includes the Report of Independent Registered Public Accounting Firm, Consolidated Balance Sheets, Statements of Operations and Comprehensive Loss, Stockholders' Equity, and Cash Flow[283](index=283&type=chunk) - Key financial notes cover significant accounting policies, fair value measurements, leases, property and equipment, accrued liabilities, credit facility, commitments and contingencies, stock-based compensation, income taxes, net loss per share, segment reporting, restructuring, and discontinued operations[283](index=283&type=chunk) - The independent auditor, **Deloitte & Touche LLP**, issued an **unqualified opinion** on the financial statements and internal control over financial reporting as of August 2, 2025[285](index=285&type=chunk) - A critical audit matter identified was the estimated **inventory reserve for excess and slow-moving inventory**, due to estimation uncertainty influenced by subjective factors like customer merchandise preference and economic conditions[293](index=293&type=chunk)[294](index=294&type=chunk) [ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.](index=79&type=section&id=ITEM%209.%20CHANGES%20IN%20AND%20DISAGREEMENTS%20WITH%20ACCOUNTANTS%20ON%20ACCOUNTING%20AND%20FINANCIAL%20DISCLOSURE.) The company reported no changes in or disagreements with accountants on accounting and financial disclosure - No changes in or disagreements with accountants on accounting and financial disclosure were reported[412](index=412&type=chunk) [ITEM 9A. CONTROLS AND PROCEDURES.](index=79&type=section&id=ITEM%209A.%20CONTROLS%20AND%20PROCEDURES.) Stitch Fix's management concluded that disclosure controls and internal control over financial reporting were effective as of August 2, 2025, with no material changes - Disclosure controls and procedures were deemed effective as of **August 2, 2025**[414](index=414&type=chunk) - Management concluded that internal control over financial reporting was effective as of **August 2, 2025**, based on **COSO criteria**[416](index=416&type=chunk) - No material changes in internal control over financial reporting occurred during the three months ended August 2, 2025[419](index=419&type=chunk) - The company acknowledges that internal control systems have inherent limitations and cannot prevent or detect all errors or fraud[420](index=420&type=chunk) [ITEM 9B. OTHER INFORMATION](index=80&type=section&id=ITEM%209B.%20OTHER%20INFORMATION) No Rule 10b5-1 trading arrangements were adopted or terminated by directors and officers during the fiscal quarter ended August 2, 2025 - No Rule 10b5-1 trading arrangements were adopted or terminated by directors and officers during the fiscal quarter ended August 2, 2025[421](index=421&type=chunk) [ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.](index=80&type=section&id=ITEM%209C.%20DISCLOSURE%20REGARDING%20FOREIGN%20JURISDICTIONS%20THAT%20PREVENT%20INSPECTIONS.) This item is not applicable to Stitch Fix, Inc - Not applicable[422](index=422&type=chunk) [PART III](index=81&type=section&id=Part%20III) [ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.](index=81&type=section&id=ITEM%2010.%20DIRECTORS,%20EXECUTIVE%20OFFICERS%20AND%20CORPORATE%20GOVERNANCE.) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2025 Proxy Statement, including the Code of Conduct - Information on directors, executive officers, and corporate governance is incorporated by reference from the **2025 Proxy Statement**[425](index=425&type=chunk) - Stitch Fix maintains a written **Code of Conduct** for all employees, officers, and directors, accessible on its investor relations website[426](index=426&type=chunk) [ITEM 11. EXECUTIVE COMPENSATION.](index=81&type=section&id=ITEM%2011.%20EXECUTIVE%20COMPENSATION.) Executive compensation information is incorporated by reference from the 2025 Proxy Statement - Executive compensation details are incorporated by reference from the **2025 Proxy Statement**[427](index=427&type=chunk) [ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.](index=81&type=section&id=ITEM%2012.%20SECURITY%20OWNERSHIP%20OF%20CERTAIN%20BENEFICIAL%20OWNERS%20AND%20MANAGEMENT%20AND%20RELATED%20STOCKHOLDER%20MATTERS.) Security ownership information for beneficial owners and management, along with equity compensation plan details, is incorporated by reference from the 2025 Proxy Statement - Security ownership information for beneficial owners and management, along with equity compensation plan details, is incorporated by reference from the **2025 Proxy Statement**[428](index=428&type=chunk) [ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.](index=81&type=section&id=ITEM%2013.%20CERTAIN%20RELATIONSHIPS%20AND%20RELATED%20TRANSACTIONS,%20AND%20DIRECTOR%20INDEPENDENCE.) Information on certain relationships, related transactions, and director independence is incorporated by reference from the 2025 Proxy Statement - Details on certain relationships, related transactions, and director independence are incorporated by reference from the **2025 Proxy Statement**[429](index=429&type=chunk) [ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.](index=81&type=section&id=ITEM%2014.%20PRINCIPAL%20ACCOUNTING%20FEES%20AND%20SERVICES.) Principal accounting fees and services information is incorporated by reference from the 2025 Proxy Statement - Information on principal accounting fees and services is incorporated by reference from the **2025 Proxy Statement**[430](index=430&type=chunk) [PART IV](index=82&type=section&id=Part%20IV) [ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.](index=82&type=section&id=ITEM%2015.%20EXHIBITS%20AND%20FINANCIAL%20STATEMENT%20SCHEDULES.) This section lists all exhibits filed with the Annual Report, including corporate documents and agreements, with financial statements under Item 8 - The section provides an index of exhibits filed with the Annual Report, including corporate documents, equity plans, and agreements[433](index=433&type=chunk) - Financial statements are included under Item 8, and financial statement schedules are omitted[434](index=434&type=chunk) [ITEM 16. FORM 10-K SUMMARY.](index=84&type=section&id=ITEM%2016.%20FORM%2010-K%20SUMMARY.) This item is not applicable to Stitch Fix, Inc - Not applicable[438](index=438&type=chunk) [SIGNATURES](index=85&type=section&id=SIGNATURES) The Annual Report on Form 10-K was signed by the Chief Financial Officer and other authorized persons on September 25, 2025 - The Annual Report on Form 10-K was signed by the **Chief Financial Officer, David Aufderhaar**, on **September 25, 2025**[442](index=442&type=chunk) - Additional signatures include the **Chief Executive Officer, Matt Baer**, and various Directors, all dated **September 25, 2025**[445](index=445&type=chunk)

Core Insights - Stitch Fix, Inc. is participating in the 2025 Global Consumer & Retail Conference, indicating its engagement with industry trends and investor relations [1][2] - The conference will take place in New York City on October 8, 2025, featuring a fireside chat at 11:10 a.m. ET, which will be available for live webcast and replay [2] Company Overview - Stitch Fix is a leading online personal styling service that combines expert stylists with AI and recommendation algorithms to help clients discover styles that fit their personal tastes [3] - Founded in 2011 and headquartered in San Francisco, Stitch Fix aims to simplify the shopping experience by offering a curated selection of exclusive and national brands [3]

Core Insights - Stitch Fix, Inc. (SFIX) reported fourth-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, although the top line showed a year-over-year decline while the bottom line improved [1][3]. Financial Performance - The company recorded an adjusted loss of 7 cents per share, better than the Zacks Consensus Estimate of a 13-cent loss and an improvement from a 12-cent loss in the previous year [3][11]. - Net revenues were $311.2 million, surpassing the Zacks Consensus Estimate of $301 million, but decreased by 2.6% compared to the same quarter last year [3][11]. - Active clients numbered 2,309,000, reflecting a year-over-year decline of 7.9%, while average net revenues per active client (RPAC) increased by 3% to $549, marking six consecutive quarters of growth in this metric [4][11]. Operational Metrics - Average order value (AOV) rose by 12% year over year, continuing an upward trend for eight consecutive quarters, driven by an increase in items per Fix and a 7.6% rise in average unit retail [5][11]. - Gross profit fell by 4.7% to $135.7 million, with a gross margin decrease of 100 basis points to 43.6%, primarily due to higher transportation costs and a shift towards non-apparel categories [6]. - Selling, general and administrative expenses (SG&A) decreased by 20.3% to $146.9 million, with SG&A as a percentage of net revenues dropping to 47.2% from 57.7% in the prior year [7]. Profitability and Cash Flow - Adjusted EBITDA was $8.7 million, down from $9.5 million in the previous year, with an adjusted EBITDA margin of 2.8%, reflecting ongoing cost management [9]. - The company ended the quarter with cash and cash equivalents of $114 million, short-term investments of $120.9 million, and no debt, indicating a solid liquidity position [12]. Future Guidance - For the first quarter of fiscal 2026, Stitch Fix anticipates net revenues between $333 million and $338 million, representing a year-over-year growth of 4.4-6% [13]. - Full-year fiscal 2026 revenue is expected to range from $1.28 billion to $1.33 billion, indicating a 1-5% increase over the prior year, with projected adjusted EBITDA of $30-$45 million [14]. Stock Performance - SFIX stock has increased by 69.2% over the past three months, significantly outperforming the industry growth of 11.4% [15].