Stitch Fix, Inc. - Class A Common Stock (SFIX)

Shares of personalized clothing company Stitch Fix (NASDAQ:SFIX) jumped 7.8% in the morning session after William Blair upgraded the online personal styling company to “outperform” from “market perform.” 

Wall Street is overwhelmingly bullish on the stocks in this article, with price targets suggesting significant upside potential. However, it’s worth remembering that analysts rarely issue sell ratings, partly because their firms often seek other business from the same companies they cover.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Stitch Fix (NASDAQ:SFIX) and the rest of the apparel and accessories stocks fared in Q1.

Would you be interested in a stock that's quadrupled in less than three months?

A number of stocks jumped in the afternoon session after the major indices rebounded (Nasdaq +1.5%, S&P 500 +1.0%) as reports pointed to easing tensions between Israel and Iran. 

Even as May's inflation was better-than-expected, it rose slightly, hinting that firms absorbed some tariff-induced price hikes.

Stitch Fix reports better-than-expected third-quarter earnings on Tuesday after the market closed.

Shares of personalized clothing company Stitch Fix (NASDAQ:SFIX) fell 5.7% in the afternoon session after the company reported underwhelming first quarter 2025 (fiscal Q3) results: Sales were flat, and it continued to lose customers. In addition, margins stayed weak and in the red. 

Personalized clothing company Stitch Fix (NASDAQ:SFIX) reported Q1 CY2025 results exceeding the market’s revenue expectations, but sales were flat year on year at $325 million. On top of that, next quarter’s revenue guidance ($300.5 million at the midpoint) was surprisingly good and 4.3% above what analysts were expecting. Its non-GAAP loss of $0.06 per share was 48.5% above analysts’ consensus estimates.

Stitch Fix stock traded lower after the company reported better-than-expected third-quarter financial results and guidance.

The company reported progress on its turnaround strategy.

Unprofitable companies can burn through cash quickly, leaving investors exposed if they fail to turn things around. Without a clear path to profitability, these businesses risk running out of capital or relying on dilutive fundraising.

Personalized clothing company Stitch Fix (NASDAQ:SFIX) reported Q1 CY2025 results beating Wall Street’s revenue expectations, but sales were flat year on year at $325 million. On top of that, next quarter’s revenue guidance ($300.5 million at the midpoint) was surprisingly good and 4.3% above what analysts were expecting. Its GAAP loss of $0.06 per share was 45% above analysts’ consensus estimates.

Here's a look at the third-quarter earnings report from Stitch Fix.