What happened

Shares of Stitch Fix, Inc. (NASDAQ:SFIX) were gaining again today after enthusiasm continued to build for the recent IPO. The personalized online shopping service has gained over each of the last four sessions after the stock closed nearly flat on November 17 from its $15 IPO price. Today, the stock was up 16.5% as of 2:57 p.m. EST.

Though there was no news out on the stock today, excitement over Black Friday and Cyber Monday seemed to be pushing the shares higher as other retailers rose as well.

Stitch Fix Founder Katrina Lake and others gathered in celebration.

The scene from Stitch Fix's IPO at the Nasdaq. Image source: Stitch Fix.

So what

Debuting just ahead of the holiday season was a canny move for the style service as the attention from the IPO will likely boost sales during the key shopping season. Stitch Fix is not advertising any specific promotions for the holidays, but deals are available on partner coupon sites for stylist fees to be waived.

Stitch Fix is unique among retailers as the company has no stores and sells clothes only online and through its styling service. Unlike many other recent IPOs, the company is profitable and has seen revenue grow quickly to nearly $1 billion in fiscal 2017, which ended in July.

Now what 

Stitch Fix's market cap topped $2 billion, but that still seems reasonable considering the company's growth potential. Still, revenue growth slowed considerably from 113% in 2016 to 33.8% last year. With an unproven, e-commerce-based business model, the company may have some of the same issues as Blue Apron (NYSE:APRN), whose revenue growth quickly plateaued. Yet Stitch Fix is profitable and does not suffer the same execution problems that have plagued Blue Apron.

We'll learn more about Stitch Fix when the company delivers its first earnings report as a public company, which should come out in the next few weeks. Until then, expect the stock's volatility to continue.