Stitch Fix (SFIX -17.02%) stock was more or less humming merrily along at the start of this week, until it fell into a ditch Thursday morning. That gaping hole was the company’s latest set of quarterly earnings, which despite looking outwardly impressive had several areas of concern.

As a result, on a week-to-date basis the fashion stock was down notably in price Thursday night. According to data compiled by S&P Global Market Intelligence, the company’s equity had lost almost 17% of its value in those days.

Stitched up

After market close Wednesday, Stitch Fix took the wraps off its fiscal fourth quarter of 2025. When adjusted for an extra week in the same period of 2024, the company’s net revenue rose by 4% year over year to slightly over $311 million. The GAAP net loss narrowed considerably, to under $8.6 million, or $0.07 per share, against the year-ago deficit of more than $36 million.

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Both headline figures beat the consensus analyst estimates. Pundits tracking Stitch Fix stock were modeling less than $305 million on the top line, and a net loss per share of $0.10.

Improvements and beats in those two important metrics would, all things being equal, inspire investors to push into any stock. Stitch Fix is different, however, as those achievements masked one particular concerning development.

Not getting a Fix

Stitch Fix is anchored by its Fix service, in which customers can subscribe to either occasional or regular deliveries of clothes picked by the company’s stylists, paying for the ones he or she elects to keep. So the service’s subscriber numbers are crucial — if they’re not rising, the company’s growth will likely not be robust.

And they’re not rising. Stitch Fix revealed that its count of active clients — defined as those who checked out a Fix or bought an item through the company’s Freestyle marketplace — was slightly more than 2.3 million for the quarter. That meant a worrying decrease pf nearly 8% year over year.