Stitch Fix Reports Fifth Straight Quarter of Revenue Growth

Stitch Fix reported year-over-year revenue growth of 4.7% in its most recent quarter, its fifth consecutive quarter of increases, Fortune reported. Revenue per active client reached a record $578 while the active client count stood at 2.39 million. The company cut $500 million from its cost structure in prior years, including ending full-time employment for stylists.

In-house private-label brands now account for about 40% of sales. Stitch Fix recently launched AI technology that lets customers superimpose clothing on their own photos. It is also using AI to identify trends and shorten private-label design time from months to weeks.

Matt Baer, hired as CEO in 2023 after serving as an e-commerce executive at Walmart and Macy’s, has shifted the company toward retail fundamentals while retaining its data-driven roots. “What we’ve been leaning into is how to take that DNA of tech and innovation and marry that with retail’s best practices,” Baer told Fortune.

Revenue tripled between 2016 and 2021 to reach $2.1 billion and the market capitalization hit an all-time high of $11 billion that year.

Between 2021 and 2025 revenue then fell 40% to $1.27 billion and the company lost 400,000 users in the first year after its COVID-era peak. Current market capitalization stands at approximately $500 million. “The data is pretty clear: you’ve got 90% of the U.S.

Population that isn’t excited about shopping for apparel in stores,” Baer said.