What happened

Shares of Stitch Fix (NASDAQ:SFIX) outperformed the market last month, with the stock jumping 38% compared to a 7% increase in the S&P 500, according to data provided by S&P Global Market Intelligence.

The e-commerce apparel specialist has gained over 80% so far in 2019.

Stock chart with rising orange line on a blue background

Image source: Getty Images.

So what

Stitch Fix reported solid earnings results in early June that suggested continued market share gains for its disruptive approach to selling clothing online. Sales rose 17% thanks to healthy growth in key engagement metrics including the active customer base, average spending per order, and client satisfaction.

Now what

CEO Katrina Lake and her team have outlined an ambitious year ahead as Stitch Fix moves deeper into product categories like men's clothing and kids' wear. It has also begun its biggest international expansion yet with a push into the U.K.

Sure, the stock appears expensive given its paltry earnings profile. But Stitch Fix is paving the way toward robust profitability in future years by rapidly building scale and working to educate consumers about the benefits of its push-based selling model. If it keeps winning on these points, expect more market-thumping returns ahead.