Stitch Fix stems active client losses as attention turns to personalization

Core Insights - Stitch Fix is gaining market share by focusing on a client-centric and personalized shopping experience, which is attracting customers from competitors [3] - The company's net revenue increased by 7.3% year over year to $342.1 million in Q1 2026, although active clients decreased by 5.2% year over year to 2.3 million [3][4] - Stitch Fix has seen improvements in the active client growth rate for six consecutive quarters, with particular growth in the men's business [4] Financial Performance - Net revenue for Q1 2026 was $342.1 million, reflecting a 7.3% increase year over year [3] - Active clients remained steady at 2.3 million, but this represents a 5.2% decrease year over year, an improvement from a 7.9% decline in Q4 2025 [3][4] - Average order values increased by nearly 10% year over year, marking the ninth consecutive quarter of growth in this metric [4] Customer Experience Enhancements - The company has fundamentally reimagined its client experience, introducing features like Stitch Fix Vision and Stylist Connect to enhance customer engagement [6] - The new features are driving increased engagement, with new clients staying longer and spending more [6] - Stitch Fix plans to leverage AI tools to maintain momentum and achieve client growth, with tools like Vision and AI Style Assistant aiding customer interactions [5][6]