Stitch Fix Clients Seek New Sizes as GLP-1 Use Climbs

The company described a retail model powered by algorithms, data signals and stylist collaboration. Rather than relying on a single product launch, the company pointed to multiple improvements across personalization tools, assortment expansion and stylist interaction designed to increase engagement and spending over time.

Chief Executive Officer Matt Baer said on Wednesday (March 11) that AI has long been embedded in the company’s model and is becoming a more visible part of the client experience.

“A key driver of our performance is how we are leveraging technology and innovation and AI, specifically,” Baer said during the earnings call. “Technology and innovation has been at the core of Stitch Fix’s business since day one.”

The platform analyzes billions of data points about customer fit preferences, budgets and style signals. Those insights help power personalized shipments known as Fixes while also shaping product recommendations across the company’s Freestyle shopping experience.

AI Styling Tools

One of the company’s newest consumer-facing tools is Stitch Fix Vision, an AI styling feature that generates personalized outfit imagery based on a client’s profile.

“A clear example is Stitch Fix Vision, our AI-powered styling platform that provides clients with personalized imagery of them in a wide array of shoppable head-to-toe outfit recommendations based on their own style profile and the latest fashion trends,” Baer said.

The tool appears to be driving strong engagement. According to the company, 75% of clients who use Vision return to it in subsequent months. Those users also generated more than a 100% increase in Freestyle purchases over a 90-day period.

AI is also supporting the company’s network of human stylists. Stitch Fix introduced an AI Style Assistant that helps clients articulate what they are looking for before receiving a curated shipment.

“This tool captures richer signals that enable our stylists to curate fixes that better meet each client’s specific needs,” Baer said.

Together, these tools create a feedback loop between client behavior, stylist insights and algorithmic recommendations that the company says improves personalization over time.

Trends Reshape Demand

The earnings call also highlighted several shifts in consumer demand shaping the apparel business.

Seasonal winter demand boosted outerwear sales, which rose 26% year over year, while denim increased 17%. Activewear and athleisure posted particularly strong growth, rising 37% year over year combined.

Demand tied to social occasions also expanded, with “night out” and event-driven styles growing 46% during the quarter as consumers continued returning to gatherings and events.

Footwear and accessories also saw rapid growth. Footwear increased 33% year over year, including a 46% jump in sneaker purchases, while accessories rose 51%.

Another emerging trend involves consumers using GLP-1 weight loss medications, which is prompting more frequent wardrobe updates as body sizes change.

“Client mentions of weight loss in their Fix request notes has tripled over the last two years,” Baer said, adding that mentions surged 75% year over year during the quarter.

The company has increasingly marketed its styling service to consumers undergoing body transformations, positioning stylists as a resource for helping update wardrobes during the process.

What Else Stood Out

• Larger “Fix” shipments are gaining traction, with clients opting for shipments containing up to eight items instead of the original five, helping drive higher order values.
• Footwear and accessories are emerging as major expansion categories, with management estimating roughly $1 billion in incremental wallet-share opportunity among existing clients.
• New merchandise is resonating with shoppers, with sales from new styles rising roughly 50% year over year.
• The platform’s Stylist Connect feature, which enables near real-time communication between clients and stylists, is increasing the likelihood that clients request the same stylist for future shipments.
• Family accounts, which allow users to manage multiple profiles within a household, are emerging as a lower-cost way to grow wallet share and support gifting behavior.

Topline Results

Revenue rose 9.4% year over year to $341.3 million. Active clients totaled 2.3 million during the quarter. Revenue per active client reached $577, up 7.4% year over year and the highest level since the company became public.

Gross margin came in at 43.6%, while contribution margins remained above 30% for the eighth consecutive quarter.

The company ended the quarter with $240.5 million in cash and investments and no debt, while inventory rose 11.4% year over year to $122.1 million.

For fiscal year 2026, Stitch Fix expects revenue between $1.33 billion and $1.35 billion.