Stitch Fix at 2025 Global Consumer & Retail Conference: Revenue Growth and AI Integration

On Wednesday, 08 October 2025, Stitch Fix (NASDAQ:SFIX) presented at the 2025 Global Consumer & Retail Conference, detailing its strategic transformation and recent financial performance. The company highlighted its return to revenue growth, driven by innovation and technology, while also addressing potential macroeconomic challenges. Despite these challenges, Stitch Fix remains confident in its ability to capture market share and enhance client experiences.

Key Takeaways

• Stitch Fix has achieved revenue growth for two consecutive quarters, signaling a successful transformation.
• The company is leveraging AI to enhance client experiences and backend processes.
• Men’s and women’s businesses have both returned to revenue growth, with the men’s sector experiencing double-digit increases.
• New initiatives like Family Accounts and expanded assortments have boosted client acquisition and engagement.
• Supply chain improvements have significantly increased contribution profit.

Financial Results

• Revenue has grown for two consecutive quarters, with notable performance in the men’s sector, which experienced double-digit growth.
• Women’s business also showed positive revenue growth over the last two quarters.
• Key metrics have improved, with 90-day lifetime values for new clients increasing for eight consecutive quarters and revenue per active client rising for six consecutive quarters.
• Average order value grew by 12% in the last quarter, with average unit retail up 7.6% in the fourth quarter.
• Contribution profit improved by over 500 basis points in the past two years.

Operational Updates

• Stitch Fix has rebranded and enhanced its marketing technology and CRM capabilities to better target client segments, including those on GLP-1 drugs.
• The company has added over 50 new brands and launched Family Accounts to attract and retain clients.
• Generative AI is integrated into client-facing features and backend processes, improving efficiency and product development.
• The assortment has expanded into non-apparel categories, with a 100% increase in the sneakers business year over year.

Future Outlook

• Stitch Fix aims to achieve positive active client growth by the third quarter, with a slight decline expected in the first quarter.
• The company will focus on enhancing client engagement, deepening client-stylist relationships, and adding flexibility to its business model.
• Investment in technology and innovation will continue, aiming to anticipate client needs and offer personalized recommendations.

Q&A Highlights

• Stitch Fix is focused on gaining market share by outperforming traditional retailers in client service.
• Despite potential macroeconomic headwinds, the company has not observed any significant impact on its operations.
• The holiday season strategy includes launching Family Accounts and themed fixes.
• Stylists remain integral to the business, providing personalized recommendations and fostering client relationships.

Stitch Fix’s presentation at the conference underscores its strategic focus on innovation and market share growth. For a deeper dive into the discussion, readers are encouraged to refer to the full transcript.

Full transcript - 2025 Global Consumer & Retail Conference:

Dana, Interviewer: Good morning. Let’s get ready for our next session. I’m thrilled to be here today with Matt Baer, the CEO of Stitch Fix. If any of you haven’t tried Stitch Fix, you must. The reason why? It’s a stylist program for apparel. Matt can be your stylist because the belief in saying and doing matters. When you think about Stitch Fix, there’s one thing I have to read first. Thank God I looked down. Disclosures very quickly. As a reminder, this discussion may include forward-looking statements, which are subject. These statements can be subject to risks and uncertainties and reflect the company’s current expectations. Descriptions of these risks and other factors could cause actual results to differ materially from these statements discussed in Stitch Fix filings with the SEC, including its most recent Form 10-K.

Statements made today are effective only today and will not be updated to reflect subsequent events or circumstances that may arise. Moving aside, we have Matt Baer, CEO of Stitch Fix, Dave Lilly, also here, CFO and IR. When you think about Stitch Fix, and frankly, you think about Matt, retail innovation, we talked about this morning, concept execution and management. You have a concept here in Stitch Fix that’s creating innovation and newness with the most recent innovation about Stitch Fix Vision. To tell you a little bit of his background and why he came to Stitch Fix just two years ago, I’m going to turn it over to Matt, and we’ll have a discussion. Thank you, Matt.

Matt Baer, CEO, Stitch Fix: All right, Dana. I appreciate being here. Excited to chat and love talking about Stitch Fix. Despite the legalese you just read, we don’t even have to talk about forward-looking statements because our past results have been pretty remarkable. The Stitch Fix business has returned to revenue growth. Two consecutive quarters, we’re gaining market share. The reason is because Stitch Fix is the leading personal styling service. We help our clients look good. We help ensure that our clients get product that fits, and we help our clients feel their best and feel confident every day when they go to work or go out in the world. We do this because we have leading innovation and technology, as well as pairing that with an expert human stylist to create an unparalleled level of service that no other apparel retailer can deliver and clients so desperately want and deserve.

Maybe if I just tell a little bit of a little story quickly for anyone unfamiliar with the service, to me, I always think about the golden age of retail. I think about my grandfather in South Bend, Indiana. If he walked into a tailor, the moment that he opened that door, the store clerk would say, "Hey, Mr. Baer, how are you? How are your sons doing?" They would know his wife and the communities he’s engaged with. They would also know what suits are already hanging in his closet, what his size is, and what his style preferences are, as well as his budget. Unfortunately, you cannot get that experience anywhere else today in apparel. If you walk into a cavernous department store, good luck finding someone to help you. If you do, they have no idea who you are. They don’t know anything about you.

They don’t know your style preferences, your fit, or your budget. At Stitch Fix, we ensure that every single client that we serve, we know them intimately, and we can serve them individually. When I decided to join Stitch Fix two years ago, it was because of the founding vision of the company that we were going to use technology and innovation to serve clients like no other traditional retailer could. The transformation that we’ve been on the last two years has helped us fully realize that vision. The transformation was three phases. We rationalized the business, we built it back, and now we’re firmly embedded in the growth phase of our transformation.

We are really excited about how we’ve reimagined the client experience with a lot of new and innovative features, like Stitch Fix Vision that you mentioned, where we’re using generative AI and the billions of data points that we have, as well as how well we know each client to serve them. Generative AI created images of their likeness in head-to-toe Stitch Fix apparel. It’s a shoppable image, and it’s one that’s shareable as well. It’s a really addictive experience. It’s bringing clients back into the platform on a more frequent basis. It’s also really dangerous in terms of just how likely people are to purchase out of this. From a Stitch Fix Vision image that I received of myself, I actually saw this bomber jacket a couple of weeks ago. I was inspired to buy it. I flipped it to my stylist, Heather, told her about this conference.

I said, "I need an outfit that you can put together that I can wear on stage." She sent me back another generative AI image of me head-to-toe in this exact outfit. I bought the whole thing, and here I am today.

Dana, Interviewer: Looking good.

Matt Baer, CEO, Stitch Fix: Thank you.

Dana, Interviewer: When you think about Stitch Fix and the apparel market share, what is the market share of Stitch Fix? How do you see the growth?

Matt Baer, CEO, Stitch Fix: Yeah, we are really focused on continuing to deliver for our clients every single day. That’s what drives us. I grew up in a retail family business. Thinking about how you serve your clients, how you show up for them, that is what we do at our core. We work every day to create the absolute best client experience that we can. We feel confident that if we do that, the revenue will follow, the wallet share will follow, and the market share will follow. Through the transformation journey that we’ve been on and the success of that transformation, we are now gaining market share.

The people that we are stealing it from are those traditional retailers that are underserving clients, that aren’t meeting clients’ expectations, that are creating friction, or that are forcing clients to walk into a dirty or disheveled store, or a poorly lit or messy dressing room, or online, where you’re scrolling endlessly. You’re seeing product that doesn’t match your style. You’re seeing product that you have no idea if it’ll fit. You’re seeing product that’s more expensive than your budget or so cheap you question its authenticity or quality, which you should. We are able to fill that gap because we can serve clients like no one else can.

Dana, Interviewer: You use that word clients. Tell us about active client growth, how you think about the progression.

Matt Baer, CEO, Stitch Fix: As part of our transformation, we were very focused on thinking about our clients in three different groups. We are going to go out and we are going to acquire new clients. We are going to find all those clients that we used to have a relationship with that are no longer engaged with us and bring them back into our service. Of course, our active clients, we want to engage them as much as possible. When it came to acquiring new clients, the opportunity we saw through our transformation is we rebranded our business. We also created even more sophisticated martech and CRM capabilities so that we could really target specific segments of the population. I’ll give you an example. A lot of the population today is on a GLP-1 drug. They are immersed in a body transformation.

At Stitch Fix, we can uniquely serve them to make sure that they have clothing that will fit them at every stage of their weight loss or their body transformation. We take that information of who we know and who we are able to ascertain is on a GLP-1 medication. We serve targeted marketing, not just explaining what is Stitch Fix, but why Stitch Fix as a service is perfect for them, given their unique need state. We land them on a tailored and customized landing page for that use case. Their stylist also becomes aware so that they can have a great experience and meet them where they are. We are reengaging clients because we have worked incredibly hard to improve the features and the experience that we offer and improve the physical assortment that we sell. We have added over 50 new brands over the last year.

When we tell our clients about the new experiences and the new brands, they are excited to come back, and it creates a sticky and engaging experience. With our current clients, we just continue to improve the experience every single day, like Stitch Fix Vision, like other generative AI tools that we have created, like our AI style assistant, and also the flexibility that we are building into our business model where we are allowing larger fixes, theme fixes, fixes built around a single item that the client has picked out. All of that is creating greater engagement, more frequency of visits, more frequency of purchases, and higher lifetime value.

Dana, Interviewer: Got it. As you think about this with a Stitch Fix model and metrics, what do they look like? What do they look like in the future?

Matt Baer, CEO, Stitch Fix: What do what?

Dana, Interviewer: The metrics look like in the future.

Matt Baer, CEO, Stitch Fix: Yeah, so we’re really proud about where the metrics are today and how that validates the success of our transformation. A few that I really hang my hat on. One is that when we talk about those new clients that we’re bringing into the service, our 90-day lifetime values for new clients have increased for eight consecutive quarters. That is a great validation. We’re bringing in the right clients, we’re giving them the right experience, and we’re serving them the right assortment. For our current clients, we’ve had our revenue per active client increase six consecutive quarters. When we look at the business overall to make sure that we’re giving them the right product at the right price and in the right quantities at the right time, our average order value has increased eight consecutive quarters, including growing 12% in the last quarter.

Dana, Interviewer: Got it. When you think of what generative AI does for you, where is it now?

Matt Baer, CEO, Stitch Fix: Yeah, generative AI is something that we’re uniquely able to lean into and create very specialized client experiences. That’s because when Stitch Fix was born in 2011, it was born with that technology and innovation mindset, advanced data science algorithms, and AI. That was part of our business 15 years ago. While others are playing catch-up, we’re already there, and we’re continuing to build even better experiences. That AI is embedded in our backend processes to create more efficient operations, to create better employee experiences, to help enable our stylists to better serve our clients. It also comes to life in terms of how we’re showing up for our clients as well. That’s like the AI style assistant that I spoke to, Stitch Fix Vision, as an example.

We’re also using generative AI in our private brand product development process, where all of the data that we have and the billions of data points that we have from our clients enable us to make sure that the physical product that we develop is appropriately on trend, in style, and helps us get to market faster than any other retailer.

Dana, Interviewer: Got it. You spoke about assortment. You’re making it expanding. Tell us about the assortment, how it’s changing, and what does it mean for margins?

Matt Baer, CEO, Stitch Fix: Yeah, at the end of the day, we’re a retailer. Despite all of the technology and innovation, if we don’t get that physical assortment right that ends up in a client’s home, the experience matters quite a bit less. We’ve been very focused on improving our physical assortment throughout our transformation. When I started, we did an extreme rationalization. We talked about this nearly two years ago, where we really went by and the merchants had to justify every item and every brand in our matrix. If it didn’t stand for something unique and deliver for our clients, we removed it. When we finished that extreme rationalization, we then challenged ourselves to build it back. Within our private brand portfolio, it meant exiting some brands and launching new ones, like this bomber jacket from The Commons.

It’s a new brand that we have in our men’s business, now a top 10 brand in our men’s business. It’s really been resonating extremely well with our clients. In terms of the national brands that we sell, we’ve added 50 new national brands, and we’ve grown our business with other established brands like Vuori, Public Rec, Rhone, Vineyard Vines, Marine Layer, Alex Mill, Favorite Daughter, Birkenstock, GOLA. We have really the leading assortment of national brands that any other retailer has today. The other critical piece is that we’ve moved very meaningfully into non-apparel categories. Our clients told us loud and clear that they wanted us to outfit them head to toe, not just tops and bottoms. We’ve really leaned into accessories, jewelry, handbags, footwear. In the last quarter, our sneakers business was up 100% year over year.

That’s helping us gain wallet share with our clients, gain market share in the U.S. apparel and accessories market. Most importantly, it is meeting a need that our clients told me loud and clear. They never want to shop anywhere else, and they want to make sure that we’re able to deliver for them any and all of their apparel and accessories needs.

Dana, Interviewer: When you think of the split of men’s and women’s, what are you seeing?

Matt Baer, CEO, Stitch Fix: Our men’s business is on fire. It grew double digits in the last quarter. For our fiscal 2025, which ended at the end of July, it was positive revenue growth for the entirety of the fiscal year. Our women’s business has also grown for two consecutive quarters. We are really proud that both the men’s and the women’s business has returned to revenue growth and continues to accelerate that revenue growth that we see. We are also really encouraged by the ability to drive that business even further with the launch of a new feature we call Family Accounts. With Family Accounts, or taking a step back, the Stitch Fix experience historically had been an individual relationship between client and stylist.

What we heard loud and clear from our clients in our focus groups that we run every month was that they wanted to make Stitch Fix available for the entirety of their household. When we polled our women’s clients, 90% of them purchased on behalf of a spouse or partner. Despite the fact that our men’s business was already growing double digits, we were missing that opportunity to tap into that market. Since we launched Family Accounts just under two months ago, it has really accelerated our active client growth, and it has also helped us drive incremental revenue. We are very confident that we will continue to deliver for the entire household going forward.

Dana, Interviewer: You talked about the household, talked about your metrics, the macro. What about tariffs? What about pricing? How are you dealing with it?

Matt Baer, CEO, Stitch Fix: First of all, I’ll say we have significant momentum behind our business. My perspective is that we’re going to face those headwinds head-on. We’re playing offense right now. We’re going to continue to lean into that acceleration of our revenue. As we shared on the September 24th earnings call, which is our most recent public view, not only did we increase our revenue growth quarter over quarter, but we also guided to our first quarter, which shows an even further acceleration of that revenue growth for us. The reason we’re so confident is because of those deep and enduring client relationships that we have. The clients can come to us and tell us if their budgets have changed or anything has changed in their shopping behavior or in their household, and we can tailor their experience to meet them where they are.

We also have the unique advantage that even if a client is reducing their overall wallet share or their overall spend or taking fewer trips to the mall or trying not to open a shopping app, our business delivers fixes on a recurring cadence to their doorstep. We are one step ahead of the competition in terms of capturing the remaining wallet share that those clients have. As we shared before, we haven’t seen any impact from macroeconomic headwinds in our current data, and we’re going to continue to be aggressive to continue to gain market share through this process. As you noted in the opening, I style clients myself. You really.

Dana, Interviewer: You have a lot of repeats.

Matt Baer, CEO, Stitch Fix: I do have a lot of repeats. Maybe no surprise, I’m a competitive person. We talk about with our executive team and the larger company, actually, of all the employees that style, who has the best metrics, and I’m doing pretty well. Those relationships that you build, they’re real. Our stylists are often the first person that finds out if a client is pregnant or their son got engaged or they’re planning a cruise or a vacation with their family. It’s those deep relationships, those personal and intimate relationships that get developed that allow us to uniquely serve them no matter what their budget is or no matter what the headwind might be for their household. We’re really confident that no matter what happens in the macro, we’ll continue to deliver great results.

Dana, Interviewer: When you think about seasonality, holiday for you, what does it mean?

Matt Baer, CEO, Stitch Fix: Holiday at Stitch Fix is something that, you know, we continue to lean into. Each of the two years that I’ve been here, they’ve been the most meaningful or best holidays in terms of preparedness to meet the client where they are. We’re going to continue to do the same this year. We also feel that the launch of Family Accounts helps open up gifting for us in a much more meaningful way than we’ve had previously. We’ve also leaned into occasion dressing and launched theme fixes so that when our clients are getting ready for holiday parties or Christmas or any other festivities that they have with their family, they can lean on us to make sure that we’re outfitting them for their entire occasion.

Dana, Interviewer: Has pricing changed? What have you seen from pricing?

Matt Baer, CEO, Stitch Fix: One of the major initiatives within our early transformation was to invest in our pricing science capabilities. We wanted to understand the elasticity of every item with every client so that we can make sure we have the right price and the right product at the right time for the right client. We talked a lot about this before the tariffs were a major conversation. We feel really good about how that enables us to make sure that we are getting the right price out there for our clients. In some instances, that means raising our prices a little bit to capture that elasticity. In others, we’re reducing it a little bit in order to make sure that we hit the right sell-through targets and we get the right inventory turns and profitability of our business. We feel really confident that we can continue to lean into this.

Our average unit retail last year increased every single quarter in the fiscal year. It was up 7.6% in the fourth quarter. That’s based just on pricing science and the improvements in our inventory alone. None of that was due to any impact from tariffs.

Dana, Interviewer: When you talk about the brands that are exciting, the brands you have, do you lose brands, gain brands? What’s the lifecycle?

Matt Baer, CEO, Stitch Fix: Important to us is to be very client-led in the assortment that we offer. When we did that rationalization of our assortment earlier in our transformation, we really wanted to make sure that both the market data and our customer data validated that our brand matrix, each brand within that brand matrix, was serving a specific purpose. We did a lot of editing. Since we did that editing, we’ve done a lot of additions. As I mentioned, we added over 50 new brands in just the last fiscal year. We do that to help fill white space with our current clients. We want to move more meaningfully into different use cases, from occasion dressing to athleisure. We’ve moved more definitively into different sports, like golf or tennis. It also helps ensure that we’re staying ahead of different trends.

To be quite honest, if a brand were to fall out of favor with our client base, we would edit further. We’re always out in market looking for those new and emerging brands as well.

Dana, Interviewer: Non-apparel, like hearing things about non-apparel, what does it mean for you?

Matt Baer, CEO, Stitch Fix: Non-apparel is a critical component of our strategy. As I noted, we want to make sure our clients don’t have any reason to shop anywhere else. They love Stitch Fix. We provide unparalleled service and convenience for them. For someone that has an entire household on Stitch Fix, we’re saving them conservatively over 250 hours a year that they would otherwise spend shopping, going to malls, scrolling endlessly online. We give them that time back to spend with their family, soccer games, dance recitals, leisure activities. When we move into non-apparel, that helps us take the entire wallet share for those clients. That helps us really do head-to-toe outfitting to make sure that we can accessorize them so that they can look and feel their best in every setting.

Dana, Interviewer: Where you are in your transformation now, what are the markers that we should be watching for? What are your goals?

Matt Baer, CEO, Stitch Fix: Our goal ultimately is just, as I noted, to continue to serve our client at an exceptional level. I know that if we do that, we’ll continue to steal market share. I believe in retail, there’s winners and losers, and the winners are gaining market share. The others are not. For us, we’re really proud of the fact that for two consecutive quarters, we’re a market share gainer. That’s where our mindset continues to be. We’re going to continue to compete. We’re going to continue to win. If we’re stealing market share from the competition, then I would look at that as the biggest signal that we’re serving our clients exceptionally well and that we’re going to continue to do so in the future.

Dana, Interviewer: Supply chain’s been a topic. Is it a topic for you?

Matt Baer, CEO, Stitch Fix: We feel really good about how the team has leaned in to really generate the best possible results within our supply chain. It goes back to the first stage of our transformation and rationalizing the business. We wanted to make sure that we had retail best practices across the board. What that means is that we had the absolute best merchandising processes, merchandising operations processes, private brand product development, sourcing. As we leaned into that over the first year, that’s really helped serve us well in the last year. When we look across our vendor matrix, for example, the vast majority of our private brand vendors now have country of origin capabilities in multiple countries. It allows us to be very dynamic and very flexible in terms of where we’re sourcing our goods.

The private brand product development utilizing generative AI helps us get to market much faster throughout the product development and supply chain process. We’ve also instituted tremendous efficiencies within our supply chain operation as well. One of the markers of the work here, it’s based on many things, including the work we’ve done in our supply chain, is that we’ve improved our contribution profit over 500 basis points in the last two years.

Dana, Interviewer: More to go.

Matt Baer, CEO, Stitch Fix: It’s the mindset that we have every single day. How do we continue to get more efficient? How do we drive more leverage through the business? Critically, how do we do that without it coming at the expense of the client experience? I’ve been there before where there’s a lot of Excel exercises that look to cut costs that ultimately become taxes on the customer or a degradation of the customer experience. That’s not what we do at Stitch Fix. What we do at Stitch Fix is we improve our operations, increase our efficiency, and deliver a better client experience through that process.

Dana, Interviewer: Tell us about the stylist and the importance of the stylist.

Matt Baer, CEO, Stitch Fix: Yeah, so critical to the Stitch Fix ecosystem and the Stitch Fix service is that stylist, is that relationship that the stylist has with every single client. The way that the stylist shows up is also tailored to what the individual needs of each client is. If a client is much more comfortable in a uniform and wears something, you know, very similar day to day, they might have, you know, relatively minimal interaction with that stylist. At the same time, that’s a resource for them. If they have a destination wedding in Maine and have no idea how to dress for the occasion, they can reach out to their stylist and engage with them directly. We also recently launched the Stylist Connect platform that allows clients and stylists to talk in real time.

That’s another manner in which clients can send images to stylists to say, "Hey, I saw this. Can you provide an outfit or use this as inspiration for my next fix?" Vice versa, a stylist now can proactively reach out to the client. If they know that client has accepted every single Vuori item we’ve ever sent them, for example, that stylist now knows, "We just got a new shipment of Vuori in stock. I’m going to reach out to my client and let them know, show them that assortment, and see if they want me to send that to them proactively.

Dana, Interviewer: Got it. In the last few minutes we have, what numbers do you watch for Stitch Fix that you’re looking to? What do you see as Stitch Fix of the future?

Matt Baer, CEO, Stitch Fix: Yeah, we continued, obviously, at the highest level, continue to see that acceleration of our revenue. As we shared on the September 24th earnings call and the most recent public view, we’re really proud of the fact that we’ve had five consecutive quarters of improvement in our active client growth rates. We also shared on that call that in the third quarter of this fiscal year, we’re going to return to positive active client growth. Maybe even more excitingly, we shared that in the first quarter of this year, we’re guiding our active client growth to be flat to down just 0.5% at our base of 2.3 million clients. That’s the delta of just about a thousand, a couple thousand clients. That revenue growth is there. We’re stealing market share, and we’re on the precipice of inflecting to active client growth as well.

We feel really confident in terms of our ability to continue to drive that acceleration. When we look to the future, we’re going to continue to fall back on the same pillars of our reimagined experience. How do we drive better and enhanced engagement with our clients? How do we continue to deepen that client-stylist relationship? How do we continue to add flexibility into our business model? How do we continue to make sure that we’re providing the absolute leading assortment for our clients? You package all of that together with our leadership in technology and innovation, and you can see the future in which we can continue to add additional convenience and start to truly anticipate the needs of our clients before they ever have to do anything.

If I’m waking up on a rainy morning in New York City and I’m attending a work conference, I can get a push notification from Stitch Fix that tells me, "I know what’s in your closet. This is what you should wear today, given what you have on your work schedule and given the weather in your local environment." They can also make recommendations and say, "You know, maybe you should also invest in this other jacket because that would have been more appropriate for a day like today." That distant future is not far off for us. We feel really good that we’re going to continue to be that leader in technology and innovation to create unparalleled levels of service and convenience for our clients.

Dana, Interviewer: Thank you very much. We are all going to be outfitted by Stitch Fix. Look forward to seeing you next year here and exactly what the new initiatives are with the Vision and other things. Thank you so much, everyone. Thank you, Matt.

Matt Baer, CEO, Stitch Fix: Thank you.

Thank you.

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