Stitch Fix Eyes Sustained RPAC Growth With Advanced AI in FY26

Stitch Fix, Inc. SFIX concluded fiscal 2025 with solid momentum, driven by consistent growth in revenue per active client (RPAC). In the fiscal fourth quarter, RPAC rose 3% year over year to $549, marking the sixth consecutive quarter of improvement. This continued progress underscores the company’s success in deepening client engagement and driving higher spending, even as total active client counts remain moderated.

Artificial intelligence remains central to this performance. In fiscal 2025, the company introduced Stitch Fix Vision, a generative AI-powered styling platform that enables clients to visualize themselves in curated, shoppable outfits aligned with their personal style and current trends.

Vision enhances confidence and convenience in purchasing decisions, supporting order frequency and overall client satisfaction. Complementary tools, such as the AI Style Assistant, further refine communication between clients and stylists, while advanced analytics optimize product assortment and accelerate private-brand development.

Stitch Fix plans to extend personalization capabilities through Stylist Connect, a platform for continuous client-stylist collaboration, and Family Accounts, designed to broaden engagement across households. We estimate year-over-year RPAC growth of 3.2% for fiscal 2026.
The company projects fiscal 2026 revenues between $1.28 billion and $1.33 billion, indicating a 1-5% increase from fiscal 2025. Fiscal first-quarter revenues are expected between $333 million and $338 million, suggesting 4.4-6% year-over-year growth.

By integrating advanced AI technology with human styling expertise, Stitch Fix continues to redefine personalized shopping. The ongoing rise in RPAC demonstrates strong client relationships and reinforces the company’s long-term potential for sustainable, profitable growth and value creation.

Stitch Fix’s Price Performance & Valuation

SFIX shares have gained 0.7% year to date against the industry’s decline of 18.3%.

From a valuation standpoint, Stitch Fix trades at a forward price-to-sales ratio of 0.44X, down from the industry’s average of 1.67X. It has a Value Score of C.

Stitch Fix currently carries a Zacks Rank #2 (Buy).

Other Key Picks

Some other top-ranked stocks are Boot Barn Holdings, Inc. BOOT, FIGS Inc. FIGS and American Eagle Outfitters Inc. AEO.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Boot Barn’s fiscal 2026 earnings and sales implies growth of 20.5% and 16.2%, respectively, from the year-ago actuals. Boot Barn delivered a trailing four-quarter average earnings surprise of 5.4%.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It sports a Zacks Rank #1 at present.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 300% and 5.4%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

American Eagle is a specialty retailer of casual apparel, accessories and footwear. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for American Eagle's current fiscal-year earnings and sales indicates declines of 36.2% and 1.5%, respectively, from the year-ago actuals. AEO delivered a trailing four-quarter average earnings surprise of 30.3%.

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This article originally published on Zacks Investment Research (zacks.com).

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