Stitch Fix Shares Plunge 19% After Weak FY2027 Revenue and EBITDA Guidance

Stitch Fix tumbled roughly 19% in premarket trading on September 24, 2026, after the online personal styling company posted mixed fourth-quarter 2026 results and issued a fiscal 2027 outlook that badly missed Wall Street expectations. The company projected full-year FY2027 revenue of $1.31 billion to $1.36 billion, below analyst consensus, while also guiding for adjusted EBITDA margin compression that analysts called far weaker than anticipated. Management cited soft consumer spending and rising client acquisition costs as the primary headwinds weighing on the year ahead, undermining a recovery narrative that had attracted bullish investors.

The earnings release triggered a swift wave of analyst action. William Blair downgraded Stitch Fix to Market Perform from Outperform, citing customer growth concerns. Mizuho reiterated its Underperform rating, pointing directly to the guidance miss. Telsey Advisory Group kept its Market Perform rating but slashed its price target to $3 from $5. A Seeking Alpha analyst downgraded the stock to Sell, arguing that expected demand decay and EBITDA compression mean the company no longer qualifies as a high-quality holding in a volatile, rising-yield environment.