AI Innovation Drives Stitch Fix's Revenue Per Active Client Growth

Stitch Fix, Inc. SFIX closed fiscal 2025 with encouraging momentum, highlighted by a consistent increase in revenue per active client (“RPAC”). In the fiscal fourth quarter, RPAC grew 3% year over year to $549, marking the sixth consecutive quarter of improvement. This trend underscores the company’s ability to attract and retain highly engaged clients even as overall active client counts remain pressured.Artificial intelligence has been central to this momentum. The launch of the AI Style Assistant has helped clients communicate preferences more effectively, while stylist recommendations are refined through real-time data and generative AI imagery. Similarly, the Vision tool allows clients to visualize themselves in shoppable outfits, boosting confidence in purchases and driving order frequency.AI has also transformed product assortment. By analyzing billions of client interactions, Stitch Fix identifies emerging trends faster and accelerates private brand development. This ensures a steady flow of relevant, on-trend items that resonate with clients, lifting average order values and contributing directly to RPAC growth.Looking ahead, Stitch Fix plans to deepen these capabilities in fiscal 2026. The introduction of Stylist Connect, which allows continuous collaboration between clients and stylists, along with Family Accounts, is expected to broaden household engagement and spending.Stitch Fix expects fiscal 2026 revenues between $1.28 billion and $1.33 billion, a 1-5% increase from the prior year. For the first quarter of fiscal 2026, Stitch Fix anticipates net revenues between $333 million and $338 million, representing year-over-year growth of 4.4-6%. The company anticipates further gains in RPAC as innovations in generative AI styling tools and visual try-on capabilities improve conversion and client satisfaction.By integrating advanced AI tools with its human stylist expertise, Stitch Fix is redefining the personalized shopping experience. The steady rise in RPAC demonstrates not only stronger client relationships but also the long-term potential of AI to fuel sustainable and profitable expansion.Stitch Fix’s Price Performance & ValuationShares of Stitch Fix have gained 9.3% year to date against the industry’s decline of 7.3%.Image Source: Zacks Investment ResearchFrom a valuation standpoint, Stitch Fix trades at a forward price-to-sales ratio of 0.49X, down from the industry’s average of 1.90X. It has a Value Score of B.Image Source: Zacks Investment ResearchStitch Fix currently carries a Zacks Rank #3 (Hold).Key PicksSome better-ranked stocks in the retail space are Genesco Inc. GCO, Deckers Outdoor Corporation DECK and Tilly's, Inc. TLYS.Genesco is a Nashville-based specialty retail and branded company that sells footwear and accessories in retail stores. 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 GCO’s fiscal 2026 earnings and sales implies growth of 67% and 3%, respectively, from the year-ago actuals. Genesco delivered a trailing four-quarter average earnings surprise of 28.1%.Deckers is a leading designer, producer and brand manager of innovative, niche footwear and accessories. It carries a Zacks Rank #2 (Buy) at present.The Zacks Consensus Estimate for Deckers’ current fiscal-year sales indicates growth of 9% from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 39.5%.Tilly's is a specialty retailer in the action sports industry, selling clothing, shoes and accessories. It has a Zacks Rank of 2 at present.The Zacks Consensus Estimate for Tilly's current fiscal-year earnings indicates growth of 8.8% from the year-ago actual. TLYS delivered a trailing four-quarter average earnings surprise of 60.7%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Deckers Outdoor Corporation (DECK): Free Stock Analysis Report Genesco Inc. (GCO): Free Stock Analysis Report Tilly's, Inc. (TLYS): Free Stock Analysis Report Stitch Fix, Inc. (SFIX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks