The Stitch Fix application is available for download from the Apple App Store on a smartphone in Hastings-on-Hudson, New York, USA on Saturday, June 5th, 2021. Stitch Fix Inc. is expected to be released on June 7th.

Tiffany Hagler-Geard | Bloomberg | Getty Images

Stitch Fix’s shares soared on Monday after the online shopping and styling service reported a smaller-than-expected loss in the third quarter of fiscal year.

Sales exceeded analyst estimates, driven by consumers freshening up their wardrobes and looking for styles in new sizes.

The share had recently risen by around 16% in extended trading.

Stitch Fix has also raised its full-year revenue outlook, having previously lowered it due to the uncertainty surrounding the Covid pandemic. And it offered a better-than-expected revenue outlook for the fourth fiscal quarter.

President and new CEO Elizabeth Spaulding noted that the company is gaining momentum as the environment for clothing retailers improves across the country.

Here’s how Stitch Fix performed in the reporting period ending May 1, compared to the forecasts of analysts using refinitive estimates:

  • Loss per share: 18 cents vs. 27 cents expected
  • Revenue: $ 535.6 million versus an expected $ 511 million

Stitch Fix’s loss decreased to $ 18.8 million, or 18 cents per share, compared to a loss of $ 33.9 million, or 33 cents per share, last year. That was better than the loss of 27 cents expected by analysts.

Revenue rose 44% to $ 535.6 million from $ 371.7 million a year ago, beating estimates of $ 511 million.

The number of active customers rose year-on-year by 20% to 4.1 million and was 234,000 higher than in the previous quarter. Stitch Fix defines active customers as those who have purchased an item directly from its website in the 52 weeks from the last day of the quarter.

Revenue per active customer was $ 481, 3% less than last year but 3% more than the previous quarter.

For fiscal year 2021, Stitch Fix is ​​now calling for sales of $ 2.07 to $ 2.08 billion, which would mean 20.9 to 21.5% growth over the previous year. Earlier this year, the company lowered its annual revenue forecast to a growth range of 18-20%. Analysts had expected revenue to grow 19.1% year-on-year.

For the fourth quarter an increase in sales of 21.8% to 24% compared to the previous year is expected. Analysts had been looking for an increase of 20.6%.

At the close of trading on Monday, Stitch Fix’s shares have fallen by around 1% year-to-date. The company’s market capitalization is $ 6.2 billion.

The full Stitch Fix financial press release can be found here.