AI-Driven Personalization Fuels SFIX's Rising AOV & RPAC in Early FY26

Stitch Fix, Inc. SFIX entered fiscal 2026 with accelerating Average Order Value (AOV) growth, reinforcing the strength of its transformation strategy. In the fiscal first quarter, AOV increased 9.6% year over year, marking the ninth consecutive quarter of improvement and confirming rising transaction value per client. This momentum reflects the effectiveness of larger Fix offerings and a more compelling, higher-value assortment rather than inflation-driven pricing.

The lift in AOV was driven primarily by larger basket sizes and expanded penetration into higher-demand categories, such as footwear, denim and outerwear. Management highlighted robust category performance in the fiscal first quarter, with women’s sneakers up 63%, wide-leg denim surging 217% and seasonal categories growing 19%, illustrating the impacts of curated assortment strategies. Men’s categories also delivered strong results, including 57% combined growth in fleece, sweaters and outerwear, 30% growth in denim and 24% in sneakers. These mix shifts continue to elevate average order economics.

Revenue per active client (RPAC) also strengthened, rising 5.3% year over year to $559 — its seventh consecutive quarter of increases. This growth reflects deeper wallet share and higher client engagement rather than reliance on customer acquisition alone. Management emphasized that recurring Fix adoption and greater reengagement from dormant clients are driving more predictable and higher-quality revenue streams. 

Stitch Fix’s personalization engine continues to amplify value per transaction. AI-powered tools, such as Stitch Fix Vision and the AI Style Assistant, enhance decision-making, assist clients in articulating preferences and strengthen stylist collaboration. Additional initiatives like Stylist Connect and Family Accounts broaden engagement and encourage higher-order potential across households.

Together, rising AOV and RPAC showcase meaningful structural leverage in Stitch Fix’s model. Category expansion, larger Fix formats and AI-led personalization continue to deepen loyalty and elevate transaction value, positioning the company for sustained, profitable growth through fiscal 2026 and beyond.

Stitch Fix’s Price Performance & Valuation

SFIX shares have gained 30.4% year to date against the industry’s decline of 1.6%.

From a valuation standpoint, Stitch Fix trades at a forward price-to-sales ratio of 0.56X, down from the industry’s average of 1.95X. It has a Value Score of B.

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

Other Key Picks

Some other top-ranked stocks are FIGS Inc. FIGS, Boot Barn Holdings, Inc. BOOT and Allbirds Inc. BIRD.

FIGS is a direct-to-consumer healthcare apparel and lifestyle brand. It sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales indicates growth of 450% and 7%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 87.5%.

Boot Barn operates as a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. It currently carries a Zacks Rank of 2. 

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%.

Allbirds is a lifestyle brand with naturally derived materials to make footwear and apparel products. It carries a Zacks Rank of 2 at present.

The Zacks Consensus Estimate for Allbirds’ current financial-year sales and earnings indicates a decline of 15.1% and growth of 19.9%, respectively, from the year-ago actuals. BIRD delivered a trailing four-quarter average earnings surprise of 18.5%.

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

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