Shares of Stitch Fix (SFIX 6.15%) skyrocketed 44.6% in the month of June, according to data from S&P Global Market Intelligence, after the personalized apparel specialist announced significantly stronger-than-expected quarterly results. To be sure, Stitch Fix stock jumped more than 26% on June 8, 2018, alone, the first trading day after its stellar fiscal third-quarter 2018 report was made available to investors.
More specifically, Stitch Fix's revenue last quarter climbed 29% year over year to $316.7 million, and translated to net income of $9.5 million, or $0.09 per diluted share (swinging from a loss of $0.38 per share in the same year-ago period). By comparison, most investors were only looking for earnings of $0.03 per share on revenue of $306.5 million.
The underlying drivers of Stitch Fix's results were also encouraging; active clients increased 30% year over year to 2.7 million, and the company further stoked the fire by announcing it would soon launch Stitch Fix Kids, marking a logical expansion of its increasingly popular core business.
For any investors who doubt whether such a pronounced pop was merited, we should also keep in mind that Stitch Fix stock had only just fallen 17% in the month May, namely as investors seemed to balk at a pair of shareholder presentations that, incidentally, should have instead served to help them better predict the company's impending outperformance. If Stitch Fix is able to sustain this business momentum as it moves into new markets, I suspect its recent gains will only represent the beginning of a much longer trend.