Stitch Fix, Inc. (SFIX) stock is trading higher by more than 11% on Monday, rebounding after a sharp post-earnings selloff last week.
The stock remains under pressure following the company's mixed fourth-quarter results and weaker-than-expected fiscal 2027 revenue outlook.
Monday's move appears to be a rebound from those losses.
The stock has also been under sustained pressure in recent months. That backdrop can amplify percentage moves when buyers return to a lower-priced stock after a steep decline.
Recent Earnings Put Pressure On Stitch Fix
Stitch Fix stock fell sharply in premarket trading on Sept. 23 after the company reported mixed fourth-quarter results and issued weak fiscal 2027 sales guidance.
Revenue rose 4.2% year over year to $324.4 million, but missed the Street estimate of $325.5 million. The company reported a quarterly loss of 2 cents per share, beating the consensus estimate for a loss of 6 cents.
However, active clients fell 1.4% year over year to 2.277 million, highlighting continued pressure on the company's customer base.
Stitch Fix expects fiscal 2027 revenue of $1.31 billion to $1.36 billion, below the analyst estimate of $1.41 billion.
Management said the outlook reflects a more challenging consumer environment and a lower starting level of active clients, which could limit revenue growth.
Analysts Turn More Cautious
Wall Street sentiment also weakened after the earnings report.
The stock carries a Buy consensus rating with an average price forecast of $3.83, based on six analysts. The forecasts range from $3 to $5.
UBS maintained a Neutral rating and lowered its price forecast to $3.50 on Sept. 24. Telsey Advisory Group kept a Market Perform rating and cut its forecast to $3. William Blair downgraded Stitch Fix to Market Perform the same day.
Those actions followed the company's weaker fiscal 2027 outlook and added to the pressure that drove the stock lower last week.
SFIX Stock Price Activity: Stitch Fix shares were up 11.14% at $2.40 at the time of publication on Monday, according to market data.
