Shares of Stitch Fix (NASDAQ:SFIX) soared 12.4% on Friday, extending a nearly 9% pop yesterday despite a lack of company-specific news. Rather, with the help of the broader market's rally today, the personalized apparel company appears to be riding a wave of recent positive momentum.
For perspective, recall Stitch Fix only just held its initial public offering in November 2017, leaving it still susceptible to some post-IPO volatility. But more recently, shares also skyrocketed nearly 45% last month after the company announced significantly stronger-than-expected quarterly results; Stitch Fix's revenue increased 29% year over year to $316.7 million -- well above the $306.5 million most investors were modeling -- driven by a 30% increase in active clients to 2.7 million. Net income also swung to $0.09 per share from a $0.38 per-share loss, besting expectations for earnings of $0.03 per share.
Stitch Fix founder and CEO Katrina Lake stated that their quarterly results "demonstrate continued positive momentum for Stitch Fix and the power of our unique ability to deliver personalized service at scale."
Stitch Fix also announced the upcoming launch of Stitch Fix Kids, logically extending the utility offered to its core adult-centric clientele. And considering the company is effectively chasing what it measures as a $400-billion-plus market for apparel, footwear, and accessories in the U.S. alone, its recent outperformance could prove to be only the beginning for early investors.