Retail

Stitch Fix soars after online styling service says active clients grew 30%

Stitch Fix beats on top and bottom
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Stitch Fix beats on top and bottom

Stitch Fix soared after the company reported strong earnings and user growth on Thursday.

Here's how the company did compared to what Wall Street expected:

  • Earnings: 9 cents vs. 3 cents forecast by Thomson Reuters
  • Revenue: $316.7 million vs. $306 million forecast by Thomson Reuters
  • Active clients: 2.7 million vs. 2.66 million forecast by StreetAccount

In the year-ago quarter, Stitch Fix reported a loss per share of 38 cents on $245.1 million in revenue.

Shares of the online personal styling service soared as much as 11 percent in after-hours trade. The stock has since pared its gains, but was still seen trading more than 5 percent above its closing price.

Founder and CEO Katrina Lake said the company has been able to post revenue growth without sacrificing investment in the business.

"Our third quarter results demonstrate continued positive momentum for Stitch Fix and the power of our unique ability to deliver personalized service at scale," Lake said in a statement.

Stitch Fix also said it will also launch a version of its platform for kids clothing.

Separately, the company also named Deirdre Findlay as its new chief marketing officer. Findlay previously served as senior director of global hardware marketing at Google.