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At a loose end

Can AI fix Stitch Fix?

The clothing subscription service posted its first quarter of sales growth in three years — now it’s doubling down on AI.

Claire Yubin Oh

8/15/25 6:49AM

Stitch Fix, the online personal styling service that sends handpicked outfits to your door, has had a rough few years.

Founded in 2011, the company’s relatively narrow appeal — to those who didn’t like clothes shopping and didn’t want to choose what they wear — widened massively during the pandemic, as shops shuttered and fashion went online. But as quickly as the hype came, it disappeared, with the SFIX’s stock dropping more than 90% between January 2021 and the summer of 2022 as customers ditched the platform for rival subscriptions, or just went back to shopping in real life again.

There are some positive signs, however, as the company posted its first top-line growth in three years, with net revenues climbing 0.7% year over year in its latest quarter. Unfortunately, its key active user figure is still dropping: falling from a pandemic-era peak of 4.3 million users, the company now counts a threadbare 2.4 million as of the end of May.

Stitch fix active user chart — Sherwood News

Now the company — which makes money by charging a $20 styling fee for all “fixes” alongside the clothes themselves — is hoping AI can help drive growth.

This week the company announced a new AI “Style Assistant” for clients, as well as new AI-powered visual tools to help you see what you might look like wearing that new scarf, sweater, or T-shirt.

Will millions of people rush out to ask an AI’s opinion of how they look in their new clothes? Considering that many already use AI as a therapist, a boyfriend/girlfriend, or a career counselor, it doesn’t feel like much of a stretch to think they’d also ask it for fashion advice.

The problem SFIX might run into is: what if ChatGPT or DeepSeek or Claude can also do this — will people open a separate AI app just for fashion? Stitch Fix’s new boss, Matt Baer, who was tasked with fixing Stitch Fix when he became CEO in June 2023, is betting the answer is yes.

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American Airlines joins the flock, hiking bag fees amid higher jet fuel prices

American Airlines on Thursday announced that it, too, will be hiking the fees it charges customers to check luggage.

With the move, all four of the major US airlines, which together control about 80% of the US market, have now hiked their baggage fees in recent days amid surging jet fuel prices.

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

Since late March, JetBlue, Delta Air Lines, United Airlines, Canada’s WestJet, and Southwest have hiked their fees. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

American Airlines updates bag fees and Basic Economy fares

The change will go into effect on tickets bought on or after Thursday, the same day Southwest’s hike begins.

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Less than a year after implementing them, Southwest is also hiking its bag fees

Southwest Airlines has joined the growing list of airlines opting to hike their bag fees amid sustained higher jet fuel costs.

Starting today, the first checked bag at the carrier — which implemented bag fees less than a year ago — will jump from $35 to $45, and the second from $45 to $55. Southwest quietly disclosed the change Tuesday.

Southwest assigned the decision to “part of an ongoing analysis of the business and against the evolving global backdrop.”

As of Wednesday, jet fuel prices dropped to $4.16 a gallon, per the Argus US Jet Fuel Index, down from $4.81 on Tuesday following President Trump’s ceasefire announcement, which sent travel stocks soaring. Major airlines have shed some of those gains in premarket trading Thursday.

With the move to hike bag fees, Southwest joins JetBlue, United Airlines, Delta Air Lines, and Canada’s WestJet, all of which also boosted fees this month. Experts expect more major carriers to follow, and to potentially tweak the pricing of other ancillary revenue sources like seat assignments and carry-on luggage.

Three US airlines have already hiked baggage fees. More are likely on the way.