Why Stitch Fix Stock Was Plummeting This Week

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].