Stitch Fix Cuts Private Brands to 10 as In-House Labels Drive Growth

Stitch Fix has consolidated its private-label portfolio from 16 brands to 10 over the past fiscal year, a strategy the company says is fueling revenue growth and deeper client loyalty. The personal styling service, founded in 2011, counted 2.277 million active clients as of the end of August.

The narrower portfolio lets each brand do more, said Amy Sullivan, vp of merchandising, who oversees private brands. "You can build a brand a few ways," she told Modern Retail. "One is saying, 'This is our workwear brand.' 'This is our everyday brand.' What we realized was that's not how clients operate. We wanted to build our brands [to fit] the actual lifestyle needs of what our clients are experiencing."

How does the strategy work in practice?

Stitch Fix now expands within its 10 in-house brands into adjacent categories such as bags, footwear and jewelry, rather than launching new labels. Because it manufactures the brands in-house, it can adjust assortments quickly. For fall 2026, it added women's belts and cold-weather accessories across 41 Hawthorn, Market & Spruce and Montgomery Post. It launched bags for Montgomery Post in spring 2026 and bags for We Wander in fall 2026.

"We have historically leaned really heavily toward tops and bottoms and more casual products," Sullivan said. "What we heard from clients was, 'I would love to get more of the products I need from Stitch Fix.'" Accessories such as sunglasses and triangle scarves position the private brands as "a one-stop shop," she added. "We think there's a lot of opportunity to expand within non-apparel."

Where do private brands rank?

The results are visible in Stitch Fix's brand rankings. The top three brands in women's are all private labels. The same holds for kids'. In men's, private brands account for three of the top five. Sullivan reported "strong growth" year over year in private-brand revenue and rising private-brand awareness among clients.

The overall business grew 6.4% year over year in fiscal 2026. Fourth-quarter net revenue per active client reached $592, up 7.8% year over year. But the company cautioned that revenue could "temper" in the coming year, citing "a more challenging consumer environment." That works out to roughly $2,368 per client per year at the current run rate.

How did AI shape the teacher capsule?

In August, Stitch Fix launched a teacher-focused capsule for 41 Hawthorn, built on more than 5,000 notes from clients who work as teachers. More than half (57%) wanted clothes meeting practical needs like movement, coverage, stretch or pocket storage. About one-third (35%) asked for coordinated, capsule or mix-and-match options. One kindergarten teacher told Stitch Fix she spends about 80% of her time on the floor but still needs to look presentable at parent drop-off.

The resulting collection arrived in time for back-to-school. It includes a 3/4-sleeve button-down shirt — so "you don't have to worry about actually rolling up your sleeves" to correct papers, Sullivan said — plus the Lessons to Lounge Trouser and Cozy Cash Cardigan. Every item is machine washable. Many pieces rank among Stitch Fix's best fall performers for teachers, and the styles resonate with the wider customer base as well.

What role does AI play across the portfolio?

Stitch Fix uses AI to summarize trends, kick-start design and collect client ratings. AI tools analyze photos taken by employees comparison shopping in Paris, New York and London, helping sort styles by brand aesthetic — a bandana theme might suit Market & Spruce, loose-fit denim The Commons. Stylists prompt AI with requests such as a sweater in a non-itchy, stretchy yarn, then refine the output. Through its "Style Shuffle" feature, clients submitted more than 14 million ratings on nearly 2,800 AI-designed clothing concepts in 2026 to inform upcoming collections.

Stitch Fix launched its first women's private brands in 2013, adding men's in 2016 and kids' in 2018. Current labels include 01.Algo — whose activewear range traces 20% of revenue to workwear — plus Hawker Rye, Rumi + Ryder, Bixby Nomad, The Commons and Alesbury. Other private brands now span multiple demographics and categories.

Why does this fit the broader retail picture?

Private brands have become ubiquitous across retail as inflation-weary shoppers trade down. Aldi revamped its private-label packaging; Walmart announced a Great Value redesign earlier this year. Private brands represent more than 50% of JCPenney's total business, where the top-selling brand is private. A 2025 Gartner survey found 77% of respondents believe store brands match or beat name brands on quality. At Stitch Fix, Sullivan frames the value as "cost-per-wear": "I often ask my team, 'Could she wear this multiple times a month?'"

Stitch Fix will keep building out its private brands in 2027 and will feature them in its holiday messaging. The clearest success signal, Sullivan said, is demand by name: "When you have clients who are asking their stylists for the brands by name, that's the best indication that we've been able to be successful with the assortment."