Stitch Fix (SFIX) Stock Forecast & Price Target

Stitch Fix Inc. demonstrated strong financial performance in 4QF25, with an operating margin that expanded by 950 basis points to (3.6%), surpassing market expectations. The average order value (AOV) also rose by 7.6% year-over-year, driven by a refreshed merchandise mix that focused on trendy styles and an expanded product lineup. Furthermore, the company's first fiscal quarter sales exceeded expectations and are anticipated to grow between 4.4% and 6.0% year-over-year, signaling a positive trajectory for future revenue.

Stitch Fix Inc. reported a fourth-quarter adjusted EBITDA margin of 2.8%, reflecting a contraction of 20 basis points from the previous year, which indicates ongoing challenges in maintaining profitability. Additionally, the gross margin decreased by 100 basis points year-over-year to 43.6%, falling short of both internal forecasts and broader market expectations despite being slightly better than consensus estimates. Furthermore, total revenue declined by 2.6% to $311 million, although this was an improvement compared to prior guidance and consensus predictions; still, the overall financial trajectory suggests struggles in sustaining growth and profitability.