Stitch Fix, Inc. (SFIX) AI Stock Analysis
SFIX AI stock analysis summary
AI ResearchStitch Fix, Inc. is an online apparel styling retailer that generated $1.35B in revenue in FY2026. After several years of sales contractions, the company posted 6.4% revenue growth in FY2026 alongside net income of -$12.6M. However, its share price fell 52.0% year-to-date to close at $2.52 on October 16, 2026.
- Market cap
- $336.7M
- Revenue (TTM)
- $1.35B
- P/E
- —
- 1Y return
- -38.4% S&P 500 16.8%
- Avg. target
- $3.40 34.9% vs last close
Bull case
- Stitch Fix returned to top-line expansion in FY2026, increasing annual revenue by 6.4% to $1.35B.
- The balance sheet retains $104.2M in net cash, with $172.5M in cash and short-term investments against $68.3M in debt.
- Free cash flow improved to $19.8M in FY2026, up from $8.9M in FY2025.
Bear case
- The company remained unprofitable in FY2026, recording net income of -$12.6M and a net margin of -0.9%.
- Analysts project revenue will drop to $1.34B in FY2027, with EPS expected to worsen to -$0.11.
- Short interest is elevated, with short percent of float standing at 15.4%.
What Stitch Fix does
Stitch Fix, Inc. is an online retailer specializing in personalized styling services for apparel, shoes, and accessories across the United States and the United Kingdom. Founded in 2011 and headquartered in San Francisco, California, the company combines data science with expert styling to provide customized fashion recommendations. Through its website and mobile app, Stitch Fix delivers curated clothing items directly to consumers' doors based on their individual style profiles and preferences. The brand offers a wide range of merchandise including denim, dresses, blouses, skirts, jewelry, and handbags for men, women, and children.
Growth and profitability
Between FY2021 and FY2026, revenue recorded a 5-year CAGR of -8.5%, falling from $2.02B in FY2022 to $1.27B in FY2025 before rebounding to $1.35B in FY2026 with 6.4% revenue growth. Gross margin stood at 43.7% in FY2026 compared to 43.9% in FY2022. Net income improved from -$207.1M in FY2022 to -$12.6M in FY2026, while diluted EPS recovered to -$0.06 from -$1.91. For the latest quarter ended July 31, 2026, quarterly revenue increased 4.2% year-over-year, while quarterly earnings declined 8.3%.
Balance sheet and cash flow
As of July 31, 2026, Stitch Fix reported $172.5M in cash and short-term investments and $68.3M in total debt, resulting in net cash of $104.2M. The company maintains a current ratio of 1.48 and a debt-to-equity ratio of 0.35 against shareholders' equity of $196.1M. Operating cash flow reached $39.1M in FY2026, generating $19.8M in free cash flow. Capital expenditures totaled $19.2M, while the company directed $26.4M toward share buybacks.
Valuation and performance
Stitch Fix trades at a price-to-sales multiple of 0.2x and an enterprise-value-to-revenue multiple of 0.2x, below the median of 0.7x price-to-sales for its US-listed Consumer Cyclical peers. The company has a market cap of $336.7M and a price-to-book ratio of 1.9x. The stock has underperformed broader benchmarks, declining 38.4% over the past year compared to a 16.8% gain for the S&P 500 (SPY). Over a 5-year period, the stock fell 92.5%, whereas the index gained 83.0%.
What analysts expect
Stitch Fix is covered by 6 analysts, with 1 Strong Buy rating, 5 Hold ratings, and zero Sell ratings. The mean price target is $3.40, which is 34.9% above the last close of $2.52. For the fiscal year ending July 31, 2027, consensus estimates project revenue of $1.34B and an EPS of -$0.11. Stitch Fix beat EPS estimates in each of the last 4 quarters, and its next earnings report is scheduled for December 3, 2026.
Key risks and what to watch
- Revenue fell at a 5-year CAGR of -8.5% between FY2021 and FY2026, showing long-term customer contraction.
- A high beta of 2.35 and a 52.0% year-to-date decline demonstrate substantial share price volatility.
- Trailing operating margin of -1.0% remains below the peer median of 8.8%, reflecting continued operational losses.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this SFIX AI stock analysis
This page is an AI-written research summary of Stitch Fix, Inc. (SFIX). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: SFIX income statement, SFIX balance sheet, SFIX key metrics, SFIX analyst forecast, SFIX chart. See the SFIX stock overview for the latest quote and news.
SFIX AI stock analysis FAQ
Does Stitch Fix pay a dividend?
Stitch Fix does not pay a dividend. The company used $26.4M for share buybacks during FY2026.
What was Stitch Fix's revenue and net income in FY2026?
For FY2026, Stitch Fix reported revenue of $1.35B, up 6.4% year-over-year, and net income of -$12.6M.
How much cash and debt does Stitch Fix have?
As of July 31, 2026, Stitch Fix held $172.5M in cash and short-term investments alongside $68.3M in total debt, resulting in net cash of $104.2M.
What is the analyst price target for Stitch Fix stock?
The mean analyst price target is $3.40, which stands 34.9% above the last closing price of $2.52 on October 16, 2026.