Dive Brief:
- Stitch Fix’s “strong top line performance was the direct result of the improvements we've made to our client experience and assortment,” CEO Matt Baer said on a Q4 2025 earnings call Wednesday.
- The apparel box retailer plans to build on its CX momentum with a tool called Vision, which uses generative AI to create imagery of the customer and dress it in shoppable outfit recommendations, according to Baer.
- Client growth remained a sore point, however. Net revenue per active client was up 3% year over year, but active clients fell 1.9% quarter over quarter and 7.9% year over year to 2.3 million, according to a company earnings report.
Dive Insight:
Stitch Fix wants to leverage its CX investments to help it win over customers from other retailers.
“With regards to who we are taking market share from, at Stitch Fix, we're very much focused on delivering the most client-centric and personalized shopping experience,” Baer said during the call. “And in doing so, we're picking up share from all of the retailers that are letting consumers down.”
Even though client growth is on the decline, it has steadily improved for the past five consecutive quarters, according to Baer. He attributed the change to a combination of experience improvements and the brand’s client acquisition strategy.
Stitch Fix’s net revenue fell 2.6% year over year to $311.2 million, but was up 4.4% when adjusted for the extra week in the fourth quarter of fiscal 2024, according to the company earnings report.
Last month, Stitch Fix launched a combination of AI and human-led experiences, including an AI style assistant that uses what Stitch Fix already knows about customers to offer conversational outfit inspiration.
“As a result of our services’ continuous feedback loop, we have billions of insights on our clients’ fit and style preferences,” Baer said during the call. “And we are using these insights coupled with the latest in GenAI technology to serve them in ways only we can.”
Stitch Fix’s Stylist Connect feature, which entered beta last month, lets customers talk to stylists between orders for advice or to start designing their next apparel box.
“Client feedback on this feature has been incredibly positive, and we are also seeing higher order values from clients who have been part of the early rollout,” Baer said.
