Stitch Fix Inc. (NASDAQ: SFIX) surged 6.39% in after-hours trading on Thursday, following the release of its fiscal first-quarter 2026 financial results. The stock's rally reflects investor optimism after the company reported better-than-expected revenue and earnings.
The online apparel retailer posted Q1 revenue of $342.1 million, surpassing analyst estimates of $335.8 million and marking a 7.3% year-over-year increase. Adjusted EBITDA also beat expectations, coming in at $13.4 million compared to the consensus estimate of $10.2 million. CEO Matt Baer attributed the strong performance to the company's successful transformation strategy, which includes leveraging generative AI to enhance client engagement and operational efficiency.
Baer highlighted market share gains and improved revenue per active client as key drivers of growth. Stitch Fix also raised its full-year revenue guidance to $1.32 billion-$1.35 billion, further boosting investor confidence in the company's turnaround efforts.
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