SFIX Posts Narrower Q2 Loss, Lifts FY26 View on Improving Momentum

Core Insights - Stitch Fix, Inc. (SFIX) reported second-quarter fiscal 2026 results that exceeded both top and bottom line estimates, with year-over-year growth in both metrics [1][4] Financial Performance - The company reported an adjusted loss of 2 cents per share, better than the Zacks Consensus Estimate of a 5-cent loss, and narrower than the 5-cent loss from the previous year [4][11] - Net revenues reached $341.3 million, surpassing the Zacks Consensus Estimate of $339 million, and reflecting a 9.4% increase from the year-ago quarter [4][11] - The number of active clients was 2,288,000, a decline of 3.5% year-over-year, while the average net revenues per active client (RPAC) increased by 7.4% to $577, marking the highest RPAC since the company went public [5][6][11] Operational Highlights - The average order value (AOV) increased by 9.8% year-over-year, driven by a 7.7% rise in average unit retail, marking six consecutive quarters of growth [7] - Category performance showed significant growth, with outerwear up 26%, denim up 17%, activewear and athleisure combined up 37%, special-occasion styles up 46%, footwear up 33%, and accessories up 51% [8] Margins and Expenses - Gross profit increased by 7.3% to $148.9 million, but gross margin decreased by 90 basis points to 43.6% [9] - Selling, general and administrative expenses (SG&A) rose by 3.9% to $153.7 million, with SG&A as a percentage of net revenues decreasing to 45% [10] Future Outlook - For fiscal 2026, Stitch Fix raised its revenue guidance to between $1.33 billion and $1.35 billion, indicating year-over-year growth of 5-6.5% [19] - The company expects adjusted EBITDA to be between $42 million and $50 million, with a margin of 3.2-3.7% [19] - The fiscal third quarter is projected to have net revenues of $330-$335 million, reflecting year-over-year growth of 1.5-3.1% [16]