Stitch Fix Financial Report: Q4'18 and FY'18 Adjusted EBITDA and Net Revenue Outlook, Schemes and Mind Maps of Marketing

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Exclusive Brand Looks Forward to Next Fix: “ Yes!”

1. Jillian requests a Fix after taking a 7 month break to have twins

JILLIAN, CLIENT

• Fixes received to date: 10
• Age: 35
• Location: Ashburn, VA
• Style: Business Casual, Workout Clothes
• Profession: Management

2. A patented algorithm matches Jillian to her stylist, Sandy

3. Jillian receives a personalized

delivery & decides what to keep

Sandy logs into a custom styling application, which recommends product based on our algorithm Along with the recommendations, Sandy uses her judgment and considers specific requests from Jillian Sandy writes a personal note to Jillian

4. Jillian provides direct structured

& unstructured feedback

3 Items

Kept:

Total

At checkout, Jillian provides written feedback and rates each of the five items: One Fix at a Time, One Client at a Time

5. Sandy reviews the feedback

In the styling application, Sandy reads Jillian’s feedback and captures any learnings. The feedback is simultaneously aggregated into our full dataset to drive future algorithmic learnings. To illustrate the client and stylist interactions during a Fix order, we’ve included below a process example. Matched Your Style:  Satisfied:  Personalized: 

Sandy’s personal note to her client, Jillian:

“Congratulations on your newborn twins, Jillian. I hope you and your precious babies are doing well! I selected styles that are going to help move you effortlessly and stylishly into postpartum. I definitely understand that comfort is key and I know it’s nice to feel like your style is on point as well.”

Jillian’s specific request for her stylist:

“I’m 5 weeks postpartum (twins!) so please focus on stretchy materials for pants and tops that are longer and forgiving in midsection ” PRICE SIZE “Just Right” “Just right”

Exclusive Brand Receives Maternity Clothes Requests ~7 months pass^ Refresh Fix STYLE (^) “Love It”

We remained focused on expanding our total addressable market. In February, we celebrated the one-year anniversary of our Plus-sized offering. And today, we’re excited to announce the upcoming launch of Stitch Fix Kids. Plus In February 2017 , we launched our Plus-sized Women’s category to address a historically underserved market, which is estimated to comprise over 50 % of U.S. women (size 14 or higher)^3. Even prior to our launch of Plus, we had over 75 , 000 women on our waitlist for the offering. As we celebrate our first anniversary, we continue to see a large market opportunity for further growth and personalization. In the past year, we’ve increased our knowledge of Plus preferences and styles while building a diverse brand portfolio. Our assortment includes third-party brands as well as our own exclusive brands, and has enabled us to effectively serve a variety of client preferences. As evidence of our ability to learn quickly about new client segments, the number of items Plus clients purchased per Fix has already reached parity with what we’ve historically seen in our Women’s offering. Our personalization capabilities are powered by our ability to leverage client feedback to more closely align inventory with client preferences. Similar to our Men’s clients, Plus-sized clients have shared that fit is one of the most important attributes they consider when buying clothes. For this reason, we’ve increasingly used our exclusive brands to effectively serve these clients’ fit needs. In the last 12 months, this strategy resulted in an increase in the percent of clients who “like” or “love” the fit of their Plus apparel. Over this same period, we’ve also driven improvements in client satisfaction across both size and price. We believe that we are uniquely positioned to serve Plus-sized clients because of the combination of our broader business and many years of learning, paired with the insights our clients share with us. For example, we know that approximately 15 % of our Plus clients crossover sizes, meaning that they wear either Plus-sized tops or bottoms, but not both. This insight gives us an advantage to deliver exactly what each of our clients needs and further reinforces our ability to serve a wide range of clients with our broad inventory mix. Kids Today, we announced our upcoming launch of Stitch Fix Kids just in time for back-to-school. This category is a natural extension given that we already serve so many men and women who have children, offering parents an effortless way to shop for the entire family. Stitch Fix Kids will offer unique, affordable clothing—in sizes 2 T- 14 —across a diverse range of style aesthetics to give kids the freedom to express themselves in clothing that they feel great wearing. Using our data science capabilities, Stitch Fix stylists will curate head-to-toe outfits that kids will love. Kids Fixes will include 8 to 12 items, and will comprise both market and exclusive brands. Q3’18 Business Highlights: 4 (^3) Source: McCall, Tyler. “Luxury Fashion Has a Plus Size Problem.” Fashionista. May 2018_._

As you may recall from when we discussed our launch of Extras last quarter, we’ve made significant investments in our platform to enable flexibility in the number of items that can be included in a Fix. Stitch Fix Kids is our second product launch that leverages this platform evolution. Moreover, the addition of Kids to our category portfolio expands our addressable market and provides marketing scale. We look forward to sharing more information and updates in the quarters ahead as Stitch Fix Kids scales. We introduced Style Shuffle, an interactive game that provides us with an additional way to engage clients and receive actionable feedback to improve our offering. In 2017 , we began testing an interactive mobile and web-based game with existing clients that we call Style Shuffle. Participants who opt in are shown a variety of Stitch Fix merchandise, which they rate with a thumbs up or a thumbs down. In recent quarters, we introduced Style Shuffle to a larger portion of our clients and have seen strong early engagement. Style Shuffle is a fun, new medium for clients to share feedback with us, which bolsters our understanding of client tastes and style preferences at both the individual and aggregate level. The game allows us to collect large volumes of item-specific client feedback in between Fix shipments, which complements the rich data we already collect through the initial style profile and at Fix checkout. Using this tool, we have created an additional touchpoint of interaction between our clients and Stitch Fix. Style Shuffle participants, on average, spend several minutes interacting with the game during each session and share feedback across multiple sessions. We are applying this feedback to our proprietary styling platform to better inform stylist decisions for specific clients. While early in Style Shuffle’s implementation, we are seeing higher client engagement and satisfaction among clients that use this game. We also see tremendous opportunity to use this data to drive product decisions and further our inventory management capabilities in the future. We drove operational efficiency by deploying new tools and applications that further enhance our warehouse associates’ accuracy and productivity. Last November, we piloted a program in one of our warehouses to further integrate our technology and proprietary algorithms into the Fix picking process, resulting in meaningful warehouse efficiencies. By April 2018 , we had expanded this initiative to all five of our distribution centers and across both men’s and women’s apparel. Shortly after this expansion, we drove the most efficient operational week in Stitch Fix’s history. Overall, this initiative delivered a 15 % improvement in our warehouse efficiency, resulting in significant cost savings. We believe that many opportunities remain to leverage our engineering and data science capabilities to drive efficiencies, and plan to update you on these in the quarters ahead.

Advertising. We continue to make strategic and measured marketing investments designed to achieve near-term payback. In Q 3 ’ 18 , advertising expense was $ 25. 2 million, or 8. 0 % of net revenue.^5 Our Q 3 ’ 18 advertising spend increased relative to our Q 3 ’ 17 expense of $ 21. 3 million, or 8. 7 % of net revenue. In Q 3 ’ 18 , we generated additional cost savings that resulted from our decision to bring more of our marketing capabilities in-house. This strategy also provided us additional flexibility and learnings for our marketing initiatives. Moreover, we continued to drive favorable efficiencies resulting from our referral program. Net Income and Earnings Per Share Q 3 ’ 18 net income was $ 9. 5 million, or 3. 0 % of net revenue, compared to Q 3 ’ 17 net income of $( 9. 6 ) million, or ( 3. 9 )% of net revenue, an increase in margin of 690 basis points. Q 3 ’ 18 diluted earnings per share was $ 0. 09 , compared to $( 0. 38 ) in Q 3 ’ 17 , which included the dilutive impact of the preferred stock warrant liability. Non-GAAP diluted EPS attributable to common stockholders was $ 0. 03 in Q 3 ’ 17.^6 Adjusted EBITDA Q 3 ’ 18 adjusted EBITDA was $ 12. 4 million, or 3. 9 % of net revenue, compared to Q 3 ’ 17 adjusted EBITDA of $ 6. 1 million, or 2. 5 % of net revenue, an increase in margin of 140 basis points. This margin expansion was the result of our strong revenue growth and our disciplined expense management. Note that we do not exclude stock- based compensation expense, which we consider to be a real cost of running the business, from our adjusted EBITDA calculation. Inventory and Free Cash Flow Our capital-light business model and efficient inventory management capabilities have allowed us to deliver strong free cash flow. In fiscal 2018 year-to-date, our capital expenditures totaled $ 12. 0 million, or

1. 3 % of net revenue, while we generated free cash flow of $ 49. 5 million.^8 In addition, our inventory management practices, which are informed by data science, continue to drive healthy inventory turns of over 6 times annually on a merchandise cost basis. (^5) Advertising expenses include the costs associated with the production of advertising, television, radio and online advertising. (^6) We define non-GAAP diluted EPS as diluted EPS excluding the per share impact, when present, of the remeasurement of preferred stock warrant liability, compensation expense related to certain stock sales by current and former employees, and their related tax impacts, if any, as well as the per share impact of the remeasurement of our net deferred tax assets in relation to the adoption of the Tax Act. (^7) We define adjusted EBITDA as net income (loss) excluding other (income), net, provision for income taxes, depreciation and amortization, and, when present, the remeasurement of preferred stock warrant liability, and compensation expense related to certain stock sales by current and former employees. (^8) We define free cash flow as cash flow from operations reduced by purchases of property and equipment which is included in cash flow from investing activities. 7 For more information regarding the non- GAAP financial measures discussed in this letter, please see "Non-GAAP Financial Measures," below, including the reconciliations of our non-GAAP measures to their most directly comparable GAAP financial measures included at the end of this letter. $20. $33. ($.6) ($9.6) $9. FY'15 FY'16 FY'17 Q3'17 Q3' NET INCOME (LOSS) ($M) $42. $72. $60. $6.1 $12. FY'15 FY'16 FY'17 Q3'17 Q3' ADJUSTED EBITDA ($M)^7

Guidance: Our financial outlook for Q 4 ’ 18 and for the fiscal year 2018 , which ends on July 28 , 2018 , is as follows: Q4’ Net Revenue $310 – $320 million 20% – 24% YoY growth Adjusted EBITDA $6 – $11 million 1.9% – 3.4% margin We have not reconciled our adjusted EBITDA outlook to GAAP net income (loss) because we do not provide an outlook for GAAP net income (loss) due to the uncertainty and potential variability of other income, net and provision for (benefit from) income taxes, which are reconciling items between adjusted EBITDA and GAAP net income (loss). Because such items cannot be reasonably predicted, we are unable to provide a reconciliation of the non-GAAP financial measure outlook to the corresponding GAAP measure. However, such items could have a significant impact on GAAP net income (loss). Consistent with our Q 3 ’ 18 results, our outlook reflects the following principles by which we manage our business: drive sustainable top-line growth that ensures a great client experience, balance growth with profitability, and maintain a long-term, ROI-based view on our investments. Closing We will host a conference call and earnings webcast at 2 : 00 pm Pacific time/ 5 : 00 pm Eastern time today to discuss these results. A live webcast will be accessible on Stitch Fix’s investor relations website at investors.stitchfix.com. Interested parties can access the call by dialing 888 - 857 - 6930 in the U.S. or 719 - 325 - 4812 internationally, using conference code 8957157. The call will also be available via live webcast at investors.stitchfix.com. Thank you for taking the time to read our letter, and we look forward to your questions on our call this afternoon. Sincerely, Katrina Lake, Founder and CEO Paul Yee, CFO

FY’

Net Revenue $1.22 – $1.23 billion 25% – 26% YoY growth Adjusted EBITDA $48 – $53 million 3.9% – 4.3% margin MEDIA CONTACT media@stitchfix.com INVESTOR RELATIONS CONTACT ir@stitchfix.com

Stitch Fix, Inc. Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) (In thousands, except share and per share amounts) For the Three Months Ended For the Nine Months Ended April 28, 2018 April 29, 2017 April 28, 2018 April 29, 2017 Revenue, net $ 316,741 $ 245,075 $ 908,210 $ 718, Cost of goods sold 178,535 139,692 513,606 396, Gross profit 138,206 105,383 394,604 322, Selling, general and administrative expenses 128,454 101,368 359,696 290, Operating income 9,752 4,015 34,908 31, Remeasurement of preferred stock warrant liability — 12,858 (10,685 ) 15, Other income, net (209 ) (12 ) (244 ) (25 ) Income (loss) before income taxes 9,961 (8,831 ) 45,837 15, Provision for income taxes 474 732 19,221 12, Net income (loss) and comprehensive income (loss) $ 9,487 $ (9,563 ) $ 26,616 $ 3, Earnings (loss) per share attributable to common stockholders: Basic $ 0.10 $ (0.38 ) $ 0.28 $ 0. Diluted $ 0.09 $ (0.38 ) $ 0.15 $ 0. Weighted-average shares used to compute earnings per share attributable to common stockholders: Basic 97,055,573 25,094,602 68,596,978 24,729, Diluted 101,847,521 25,094,602 74,281,211 28,988,

Stitch Fix, Inc. Condensed Consolidated Statements of Cash Flow (Unaudited) (In thousands) For the Nine Months Ended April 28, 2018 April 29, 2017 Cash Flows from Operating Activities Net income $ 26,616 $ 3, Adjustments to reconcile net income to net cash provided by operating activities: Deferred income taxes 5,775 (2,729 ) Remeasurement of preferred stock warrant liability (10,685 ) 15, Inventory reserves 3,928 5, Compensation expense related to certain stock sales by current and former employees — 9, Stock-based compensation expense 10,277 2, Depreciation and amortization 7,538 5, Loss on disposal of property and equipment 146 — Change in operating assets and liabilities: Inventory (18,558 ) (21,202 ) Prepaid expenses and other assets (407 ) (17,123 ) Accounts payable 29,594 (8,041 ) Accrued liabilities 1,857 34, Deferred revenue 3,118 3, Gift card liability 1,495 1, Other liabilities 802 3, Net cash provided by operating activities 61,496 35, Cash Flows from Investing Activities Purchase of property and equipment (12,026 ) (13,806 ) Net cash used in investing activities (12,026 ) (13,806 ) Cash Flows from Financing Activities Proceeds from initial public offering, net of underwriting discounts paid 129,046 — Proceeds from the exercise of stock options 1,672 1, Repurchase of Class B common stock related to early exercised options (39 ) (3,557 ) Net cash provided by (used in) financing activities 130,679 (2,285 ) Net increase in cash and restricted cash 180,149 19, Cash and restricted cash at beginning of period 119,958 101, Cash and restricted cash at end of period $ 300,107 $ 121, Components of cash and restricted cash Cash $ 287,257 $ 112, Restricted cash – current portion — 250 Restricted cash – long-term portion 12,850 9, Total cash and restricted cash $ 300,107 $ 121, Supplemental Disclosure Cash paid for income taxes $ 9,583 $ 27, Supplemental Disclosure of Non-Cash Investing and Financing Activities: Purchases of property and equipment included in accounts payable and accrued liabilities $ 891 $ 228 Capitalized stock-based compensation $ 520 $ 77 Vesting of early exercised options $ 546 $ 709 Conversion of preferred stock upon initial public offering $ 42,222 $ — Reclassification of preferred stock warrant liability upon initial public offering $ 15,994 $ — Deferred offering costs paid in prior year $ 1,879 $ —

We define non-GAAP net income as net income (loss) excluding, when present, the remeasurement of preferred stock warrant liability, compensation expense related to certain stock sales by current and former employees, and their related tax impacts, if any, as well as the remeasurement of our net deferred tax assets in relation to the adoption of the Tax Act. The following table presents a reconciliation of net income (loss), the most comparable GAAP financial measure, to non-GAAP net income for each of the periods presented (in thousands): We define adjusted EBITDA as net income (loss) excluding other (income), net, provision for income taxes, depreciation and amortization, and, when present, the remeasurement of preferred stock warrant liability, and compensation expense related to certain stock sales by current and former employees. The following table presents a reconciliation of net income (loss), the most comparable GAAP financial measure, to adjusted EBITDA for each of the periods presented (in thousands): For the Three Months Ended For the Nine Months Ended April 28, 2018 April 29, 2017 April 28, 2018 April 29, 2017 Adjusted EBITDA reconciliation: Net income (loss) $ 9,487 $ (9,563 ) $ 26,616 $ 3, Add (deduct): Other income, net (209 ) (12 ) (244 ) (25 ) Provision for income taxes 474 732 19,221 12, Depreciation and amortization 2,650 2,035 7,538 5, Remeasurement of preferred stock warrant liability — 12,858 (10,685 ) 15, Compensation expense related to certain stock sales by current and former employees — — — 21, Adjusted EBITDA $ 12,402 $ 6,050 $ 42,446 $ 58, For the Three Months Ended For the Nine Months Ended April 28, 2018 April 29, 2017 April 28, 2018 April 29, 2017 Non-GAAP net income reconciliation: Net income (loss) $ 9,487 $ (9,563 ) $ 26,616 $ 3, Add (deduct): — — Remeasurement of preferred stock warrant liability — 12,858 (10,685 ) 15, Compensation expense related to certain stock sales by current and former employees — — — 21, Tax impact of non-GAAP adjustments — — — (8,890 ) Impact of Tax Act (1)^ — — 4,730 — Non-GAAP net income $ 9,487 $ 3,295 $ 20,661 $ 31,

1. (^) As discussed in Note 8 to the condensed consolidated financial statements included in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 28, 2018, to be filed with the Securities and Exchange Commission on June 08, 2018 ("Form 10-Q"), the U.S. government enacted comprehensive tax legislation in December 2017. This resulted in a net charge of $4.7 million for the nine months ended April 28, 2018, due to the remeasurement of our net deferred tax assets for the reduction in tax rate from 35% to 21%. The adjustment to non-GAAP net income only includes this transitional impact. It does not include the ongoing impacts of the lower U.S. statutory rate on current year earnings.

We define free cash flow as cash flow from operations reduced by purchases of property and equipment which is included in cash flow from investing activities. The following table presents a reconciliation of cash flows from operating activities, the most comparable GAAP financial measure, to free cash flow for each of the periods presented (in thousands): We define non-GAAP EPS as diluted EPS excluding the per share impact, when present, of the remeasurement of preferred stock warrant liability, compensation expense related to certain stock sales by current and former employees, and their related tax impacts, if any, as well as the per share impact of the remeasurement of our net deferred tax assets in relation to the adoption of the Tax Act. The following table presents a reconciliation of EPS attributable to common stockholders - diluted, the most comparable GAAP financial measure, to non-GAAP EPS attributable to common stockholders - diluted for each of the periods presented: For the Three Months Ended For the Nine Months Ended April 28, 2018 April 29, 2017 April 28, 2018 April 29, 2017 Non-GAAP earnings per share - diluted reconciliation: Earnings (loss) per share attributable to common stockholders - diluted $ 0.09 $ (0.38 ) $ 0.15 $ 0. Per share impact of the remeasurement of preferred stock warrant liability(1)^ $ — $ 0.41 $ — $ 0. Per share impact of compensation expense related to certain stock sales by current and former employees $ — $ — $ — $ 0. Per share impact from tax effect of non-GAAP adjustments $ — $ — $ — $ (0.19 ) Per share impact from Tax Act(2)^ $ — $ — $ 0.07 $ — Non-GAAP earnings per share attributable to common stockholders - diluted $ 0.09 $ 0.03 $ 0.22 $ 0.

1. (^) For the nine months ended April 28, 2018, the preferred stock warrant liability was dilutive and included in earnings per share attributable to common stockholders - diluted. Therefore, it is not an adjustment to arrive at non-GAAP EPS - diluted.
2. (^) As discussed in Note 8 to the condensed consolidated financial statements included in our Form 10-Q, the U.S. government enacted comprehensive tax legislation in December 2017. This resulted in a net charge of $4.7 million for the nine months ended April 28, 2018, due to the remeasurement of our net deferred tax assets for the reduction in tax rate from 35% to 21%. The adjustment to non-GAAP earnings per share attributable to common stockholders - diluted only includes this transitional impact. It does not include the ongoing impacts of the lower U.S. statutory rate on current year earnings. For the Nine Months Ended April 28, 2018 April 29, 2017 Free cash flow reconciliation: Cash flows from operating activities $ 61,496 $ 35, Deduct: Purchase of property and equipment (12,026 ) (13,806 ) Free cash flow $ 49,470 $ 22, Cash flows used in investing activities $ (12,026 ) $ (13,806 ) Cash flows from (used in) financing activities $ 130,679 $ (2,285 )