What happened
Shares of personalized online apparel company Stitch Fix (SFIX 4.72%) jumped on Thursday, rising as much as 26.9%. As of 11:52 a.m. EDT, the stock was up 18%.
The stock's gain follows strong fiscal third-quarter results. Earnings per share for the period came in well above what analysts were expecting. In addition, management's guidance for its fiscal fourth-quarter revenue was above analysts' average forecast for the metric.
Image source: Stitch Fix.
So what
Stitch Fix reported fiscal third-quarter revenue of $408.9 million, up 29% year over year. On average, analysts were expecting revenue of $394.9 million. Earnings per share for the period was $0.07, down from $0.09 in the year-ago quarter but ahead of analysts' average estimate for a loss of $0.03 per share.
Helping drive the company's strong financial results, Stitch Fix's active clients increased 17% year over year to 3.1 million.
"These results demonstrate our ability to attract new clients and to serve our existing clients well," said Stitch Fix CEO Katrina Lake in the company's fiscal third-quarter earnings release.
Now what
Management is optimistic about the company's opportunities ahead. The company's momentum in both men's and women's categories "give us even more confidence in our ability to scale new categories and geographies," said Lake.
Stitch Fix guided for fiscal fourth-quarter revenue to be between $425 million and $435 million, representing 34% to 37% year-over-year growth. Analysts were expecting fiscal fourth-quarter revenue of $421 million.
