Stitch Fix Is Making More Off Fewer Customers, and Betting on GLP-1 Bodies to Fix That
Stitch Fix's Q4 revenue grew even as its active client base shrank, a trade-off the styling service is leaning into as it courts shoppers navigating GLP-1-driven body changes.
Stitch Fix reported $324.4 million in fourth-quarter revenue, up 4.2% year over year and the company's sixth straight quarter of positive revenue growth, even as its active client count fell 1.4% to 2.277 million. The gap is being closed by spending per shopper: net revenue per active client hit a record $592, driven by eight consecutive quarters of growth in the number of items included in each "fix." Full-year revenue reached $1.35 billion, up 6.4%.
CEO Matt Baer credited an aggressive brand-partnership push, noting the company has "added more than 80 new brands, including Rhone, Birkenstock, Outdoor Voices and Malbon Golf." Perhaps the more telling data point: 20% of new clients are now requesting styling help tied to GLP-1-related body changes, nearly double the rate in the general population, and the company's men's business has posted double-digit growth for five straight quarters.
The guidance for fiscal 2027 is cautious, with CFO David Aufderhaar flagging "increasing gas prices, higher overall inflation, mortgage rates increasing again and the incredibly low consumer sentiment" as headwinds. Stitch Fix's bet is that a shrinking but higher-spending customer base, one increasingly shopping for a body that has changed under GLP-1 drugs, is a more durable business than chasing raw subscriber counts.
Kyle Duford, Founder & Editor, BRNDWIRE. More from Kyle →
