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Key Takeaways

• Stitch Fix shares popped Wednesday as the clothing subscription service topped second-quarter estimates.

• Revenue fell and losses narrowed from the same time a year ago, and each came in better than analysts had expected.

• CEO Matt Baer said customers "are responding" to changes like newer products and a more flexible service.

Shares of Stitch Fix (SFIX) surged Wednesday after the clothing subscription business reported better revenue and a smaller loss than analysts had expected for the second quarter of fiscal 2025.

After the bell Tuesday, the company reported $312.11 million in revenue, a decline of about 5% from the same time last year but better than what analysts had expected, according to estimates compiled by Visible Alpha.

Stitch Fix recorded a loss per share of 5 cents, smaller than the 29 cents per share it lost a year ago and the 11 cents analysts had forecast. The company's active clients also declined 15.5% year-over-year to 2.37 million, roughly in line with the analyst consensus.

Stitch Fix's Revenue Forecasts Top Estimates

The online clothing provider also topped estimates with its outlook, forecasting $311 million to $316 million in revenue for the third quarter, above the $278.6 million analyst estimate. It also lifted its full-year revenue range to $1.225 billion to $1.240 billion, up from $1.14 billion to $1.18 billion previously, and better than analysts' current projection.

CEO Matt Baer said the company's customers "are responding to the improvements we’ve made to our experience, including the increased newness in our assortment, expanded Fix flexibility, and investments in stronger client-Stylist relationships."

Baer has said previously that the company could return to revenue growth by the end of fiscal 2026.

Shares were up around 14%. They had risen some 77% over the last 12 months through Tuesday's close.

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