Stitch Fix (NASDAQ:SFIX) exceeded revenue expectations in Q2 CY2025 with sales of $311.2 million, although down 2.6% year-on-year. The revenue guidance for next quarter is $335.5 million, 13.1% above analyst estimates. The company reported a GAAP loss of $0.07 per share, beating estimates by 29%. Stitch Fix’s operating margin improved to -3.6% from -13.1% last year. Active clients are at 2.31 million, down 199,000 year on year. The stock price rose by 12.8% to $6.36 post-earnings. CEO Matt Baer highlighted a second consecutive quarter of adjusted revenue growth. Long-term revenue growth has been declining, with revenue falling 5.8% annually over the last five years and 10.8% annually over the last two years. Stitch Fix’s EPS improved by 19.1% annually over the last five years, but is expected to decline over the next 12 months. While the recent quarter showed promise, investors should consider long-term business quality and valuation before investing in Stitch Fix.

Read more at Stock Story: Stitch Fix (NASDAQ:SFIX) Beats Q2 Sales Expectations, Stock Jumps 12.4%