Stitch Fix (SFIX 1.16%) shareholders outpaced a declining market in October as the stock jumped 27% compared to the S&P 500's 2.8% drop, according to data provided by S&P Global Market Intelligence.
That rally put the volatile stock back ahead of the market so far in 2020. After declining by nearly 60% during the March lows, shares are now up over 30% this year.
The online apparel retailer didn't announce any operating news last month to change the investing picture left by its late-September earnings report that showed impressive sales and profitability trends. Instead, Wall Street found other reasons to love the stock.
These include a broadly rebounding apparel industry, booming e-commerce demand, and increased excitement around the personal shopper service that Stitch Fix has made a cornerstone of its offering.
CEO Katrina Lake and her executive team said late September that they see continued market share gains on the way as they scale up popular shopping enhancements like the new direct-buy program. Yet the next few quarters might show sluggish growth and profit trends thanks to shifts in apparel demand and the marketing pause that Stitch Fix held through the early months of the pandemic.
Investors' next chance to judge how those growth challenges are playing out will come in the form of fiscal first-quarter earnings results in early December.