Shares of Stitch Fix Inc. (SFIX) experienced a surprising 6.03% plunge during intraday trading on Wednesday, despite the company reporting better-than-expected fourth-quarter results and providing strong guidance for the upcoming fiscal year.

The online personal styling service reported a loss of $0.07 per share for the quarter ended July 31, beating analysts' expectations of a $0.10 loss. Revenue came in at $311.2 million, surpassing the Street estimate of $305.83 million. While this represents a 2.6% year-over-year decline, the company noted that adjusting for the impact of an extra week in the previous year's quarter, revenue actually increased by 4.4%.

Stitch Fix's outlook also appeared positive, with the company forecasting first-quarter revenue between $333 million and $338 million, well above analyst estimates of $293.12 million. For fiscal 2026, Stitch Fix projects revenue in the range of $1.28 billion to $1.33 billion, exceeding the $1.26 billion estimate. Despite these seemingly positive results, investors appear to have concerns, possibly related to the company's declining active client base, which decreased by 7.9% year-over-year to 2.309 million. The unexpected stock drop may also reflect broader market uncertainties or specific concerns about the company's long-term profitability and growth strategies in the competitive online retail space.