(Stitch Fix)

Stitch Fix sinks as Wall Street digests Q4 results

Stitch Fix topped the Street’s expectations for the quarter, but tepid guidance and declining customer numbers disappointed investors.

Nia Warfield

9/25/25 8:00AM

Shares of Stitch Fix were down 9% in premarket trading Thursday as Wall Street reacted to the personal styling platform’s Q4 results after the bell Wednesday.

The company reported a quarterly loss, with earnings per share coming in at a $0.07 loss, narrower than the $0.10 loss analysts polled by FactSet expected. Revenue also cleared the consensus bar, hitting $311.2 million versus the $305.8 million forecast.

The company’s guidance landed ahead of the Street’s as well. Stitch Fix foresees full-year losses per share of $0.23 and revenue of $1.28 billion to $1.33 billion, while the current-quarter outlook of $333 million to $338 million in sales handily tops consensus estimates of $315.6 million.

“Fiscal 2025 was a milestone year for Stitch Fix. We finished the year with our second consecutive quarter of year-over-year revenue growth on an adjusted basis, and once again gained share in the US apparel market,” CEO Matt Baer said. Net revenue per active client also ticked up 3% to $549.

But the relatively upbeat numbers weren’t enough to quiet investor jitters.

The total number of customers continued to decline. As Sherwood News’ Claire Yubin Oh wrote last month, the company’s “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.” That number continued to drop in the latest quarter, falling to 2.31 million.

Mizuho analysts stuck with their “underperform” (sell) rating and $3 price target on the stock, pointing to weak EBITDA margins and warning that cost pressures are still a drag even as management leans into its turnaround plan.

Before the earnings dip, shares of Stitch Fix had been up nearly 30% year to date.

Luke Kawa15m

Opendoor has erased all the gains made since September leadership changes as enthusiasm premium fizzles

If you bought Opendoor Technologies when the online real estate company revealed that Shopify COO Kaz Nejatian was coming in to serve as CEO, with cofounders Keith Rabois and Eric Wu joining the board of directors, you are underwater on that purchase.

Shares closed at $5.83 on Monday, below where they ended on September 10 ($5.86) before these management changes were announced after the close. That revelation sparked the biggest one-day gain in Opendoor’s history, with the stock up nearly 80% the next session to hit its highest level since 2022.

Of course, it’s still early days. These new leaders haven’t even reported results for a full quarter in which they’ve been at the helm.

But in looking at the factors that buoyed Opendoor the stock, it seems clear that the enthusiasm (and speculative appetite) that was omnipresent from mid-July through September has petered out. While some of this may be a function of the typically slowed holiday season, trading volumes have dipped to an average of about 62 million over the past 21 sessions, a level not seen since May. Similarly, over the past 21 sessions, call volumes are running at their lowest level since July.

Max Knoblauch17m

Nio climbs as China announces extension of its trade-in subsidy to boost EV buying

China’s trade-in subsidies intended to boost EV and low-emission vehicle purchases will be extended into 2026, according to a notice by Chinese officials on Tuesday. Shares of Chinese EV maker Nio climbed more than 6% on Tuesday morning.

Prior to the notice, China had signaled it would be pulling the plug on many subsidies for its maturing EV sector.

The extended trade-in subsidies will provide consumers up to $2,850 to scrap their older vehicles and purchase a qualifying new energy vehicle. The EV stimulus plan is part of a broader $8.94 billion program intended to boost the purchase of new consumer goods including refrigerators, smartphones, and washing machines.