Stitch Fix saw its shares surge 15.1% in morning trading following a fiscal third-quarter report that exceeded analyst expectations on multiple fronts and prompted management to raise and narrow full-year guidance. The stock's advance built on buying that began in after-hours trading the previous evening.
On the numbers, Stitch Fix posted a loss of $0.01 per share, outperforming a consensus forecast that anticipated a loss in the range of $0.05 to $0.06 per share. Revenue came in at $340.3 million, above the roughly $332 million to $334 million analysts had expected. That top-line figure represented 4.7% year-over-year growth and marked the company's fifth straight quarter of revenue expansion.
Management updated full-year FY2026 guidance, raising and tightening revenue guidance to $1.346 billion to $1.351 billion and setting adjusted EBITDA guidance at $49 million to $52 million. The adjustments were presented by the company as evidence of increased confidence in the progress of its turnaround initiatives.
Operational signals and capital return
Several operational details underpinned investor enthusiasm. Active clients increased sequentially to 2.3 million, the first quarter-to-quarter rise since fiscal Q1 2022. Revenue per active client reached a record $578, pointing to stronger monetization of the active customer base. Management also disclosed that new-client lifetime values rose year-over-year for the 11th consecutive quarter.
On capital returns, Stitch Fix noted its ongoing $150 million share repurchase program has approximately $105 million of capacity remaining, a factor that adds a buyback element to the company's capital allocation story.
Analyst reaction and market backdrop
Analysts responded to the results and guidance in different ways. UBS increased its price target on SFIX to $4.50 from $4.00 while keeping a Neutral rating. Separately, another analyst had initiated coverage at Buy just days earlier, citing operational momentum and what that analyst described as an attractive risk-reward profile.
The broader market provided a supportive environment for the move. During the session, the S&P 500 rose 0.4%, the Dow Jones gained 0.5% and the NASDAQ climbed 0.6%. Within the retail apparel sector, Stitch Fix's reported growth rate stood out: management cited Circana data indicating the company's revenue growth was more than four times that of the total U.S. apparel market. The company was compared to peers including Rent the Runway and The Gap in illustrating its competitive positioning.
Price action and outlook considerations
Following the report, SFIX reached $4.145 and pushed toward the upper end of its intraday range of $4.279. Despite the jump, the stock remains well below its 52-week high of $5.94, leaving room for further recovery should the company maintain the trajectory management described.
Taken together, the decisive earnings beat, raised and narrowed guidance, improving client metrics and mixed-to-supportive analyst commentary combined to create the catalyst for the pronounced intraday move in Stitch Fix shares.