Stitch Fix Sets New Records, Continues to Revolutionize the Fashion Industry
Stitch Fix, a leading personalized fashion platform, has announced its third-quarter fiscal 2026 earnings, showcasing impressive growth and continued innovation in the industry. With revenue reaching $340.3 million, a 4.7% increase from the same period last year, Stitch Fix marks its fifth consecutive quarter of year-over-year revenue growth.
The company's active client base has also seen significant expansion, rising to 2.3 million and increasing by 21,000 sequentially. This milestone underscores Stitch Fix's transformation journey and solidifies its position as a go-to retailer for apparel, footwear, and accessories. Revenue per active client (RPAC) has reached an all-time high of $578 in Q3, outperforming the previous record set just last quarter.
Stitch Fix's focus on operational efficiency has yielded healthy profit margins, with gross margin standing at 43.7% and contribution margin above 30% for the ninth consecutive quarter. Adjusted EBITDA was reported at $13.2 million, with an adjusted EBITDA margin of 3.9%. The company attributes its revenue outperformance in Q3 to the strength of its Fix channel.
Within the Fix channel, average order value (AOV) has increased year-over-year for the eleventh straight quarter, driven primarily by higher items per Fix resulting from expanded adoption of the larger Fix offering. Growth in average unit retail (AUR) also contributed meaningfully to overall AOV upside, reflecting the benefits of ongoing assortment improvements.
Stitch Fix's strategic investments in its own private brands and expansion into new categories have yielded impressive results. Within its women's business, demand for activewear and athleisure grew a combined 50% year-over-year, while seasonal transitions saw strength in sandals, skirts, and sneakers. Private brands Montgomery Post, 41 Hawthorn, and Market & Spruce posted the strongest growth.
Men's business also experienced double-digit growth for the fourth straight quarter, with standout performance in warm weather categories such as shorts, short sleeve woven tops, and casual shoes. Private brand Alesbury, alongside TravisMathew, Vuori, and Bonobos, led this growth. Stitch Fix's expansion into new categories holds promise, with a potential $1 billion incremental revenue if the company achieves its fair share with existing clients.
Stitch Fix continues to revolutionize the fashion industry through its commitment to innovation and client satisfaction. As it scales, the company maintains its focus on operating with financial discipline, ensuring healthy profit margins and setting itself up for continued success in the years to come.
