Stitch Fix (SFIX - Get Report) surged at the open of trading on Thursday after the curated clothing delivery company reported fiscal third-quarter earnings that beat analysts' forecasts amid stronger demand for its home-delivered clothing and accessories boxes.
Shares of Stitch Fix jumped 23.34%, or $5.50, to $29.07 in early trading on the Nasdaq Stock Market after the San Francisco-based company reported fiscal third-quarter net income of $7 million, or 7 cents a share, down from $9.5 million, or 9 cents a share, a year ago, but well above analysts' forecasts that called for a loss of 3 cents.
Active clients - people who received a box of clothing in the preceding 12-month period - came in at 3.1 million, an increase of 17% year over year. That was partly due to what the company said were the benefits of a new algorithm that helps predict product demand, particularly among consumers using its mobile app.
The company also raised its full-year revenue forecast to between $1.57 billion and $1.58 billion, up from previous estimates of between $1.53 billion and $1.56 billion. For its fiscal fourth quarter, revenue is expected to be between $425 million and $435 million.
Adjusted earnings before income, taxes, depreciation and amortization will be between $5 million and $10 million in the fourth quarter and between $38 million and $43 million for the year, the company said.