Dive Brief:
- Stitch Fix’s investments in the client experience, including real-time stylist collaboration and AI-powered discovery tools, are helping the personal styling company attract and maintain customers, though it has yet to return to client growth, executives said on a Q2 2026 earnings call Wednesday.
- Three-quarters of customers who use Stitch Fix Vision, an AI tool that provides shoppers with an image of their likeness wearing shoppable outfits, use it again in the following months, according to CEO Matt Baer. Sales more than doubled among customers who used Stitch Fix Vision over a 90-day period.
- Customers who use the Stylist Connect feature to work directly with a Stitch Fix stylist designing an order are “significantly more likely” to choose that same stylist for their next order, Baer said.
Dive Insight:
Stitch Fix has achieved two consecutive quarters of year-over-year new client growth, and leaders are using CX investments as a springboard for overall active client growth.
“The enhancements we've rolled out over the past 18 months, including greater flexibility, meaningful improvements we've made to the quality and breadth of our assortment, and new AI features are driving increased client engagement and durable revenue growth,” Baer said on the call.
New clients and reengaged clients each grew year over year for the second consecutive quarter, according to Baer. Stitch Fix also reported the highest customer retention rate in nearly four years.
While Stylist Connect is a relatively new feature, it is already helping Stitch Fix strengthen the relationship between its customers and stylists, according to Baer. These relationships are expected to contribute to greater client retention in the future.
“Our focus on delivering a strong client experience, rebuilding our active client base with discipline and maintaining financial rigor is driving improved performance and positioning us well for the remainder of the year,” CFO David Aufderhaar said on the call.
Despite its improving fortunes, the Stitch Fix has yet to fully turn the corner. Net revenue was up 9.4% year over year to $341.3 million in the second quarter of 2026, according to an earnings release. However, active clients fell 3.5% year over year to 2.3 million.
Despite the decline, Stitch Fix improved its year-over-year active client growth rate for the seventh consecutive quarter, according to Baer. The men’s business achieved year-over-year active client growth during the quarter.
Stitch Fix is on track to deliver a little under 1% quarter-over-quarter client growth in the third quarter, even if it won’t yet achieve year-over-year growth, according to Aufderhaar. The company is aiming for year-over-year active client growth in fiscal 2027.
