Online personal styling service Stitch Fix Inc. (SFIX, Financial) soared in after-hours trading on Thursday after reporting strong third-quarter 2018 earnings.
The San Francisco-based company, which went public in November, posted earnings per share of 9 cents, topping Thomson Reuters’ estimates of 3 cents. This was a significant improvement from a year ago, when it reported a loss of 38 cents per share.
Revenue grew 29% from the prior-year quarter to $316.7 million, handily beating expectations of $306 million.
Stitch Fix also said its number of active clients increased 30% year over year to 2.7 million.
In a statement, Katrina Lake, the company’s founder and CEO, shared that Stitch Fix has been able to grow revenue without cutting back on its investments 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,” she said.
Following the announcement, shares, which ended the day at $19.67, rallied as much as 11% in after-hours trading on Thursday. The gains carried over into Friday morning, with the stock up more than 8% at $21.29.
While the stock has fallen 19% year to date, GuruFocus estimates it has climbed nearly 40% since its initial public offering.
In addition, the company announced it is launching a version of its service that will cater to children, called Stitch Fix Kids.
“We’re excited for Stitch Fix to style everyone in the family and to create an effortless way for parents to shop for themselves and their children,” Lake said. “Our goal is to provide unique, affordable kids clothing in a wide range of styles, giving our littlest clients the freedom to express themselves in clothing that they love and feel great wearing.”
In a separate announcement, Stitch Fix disclosed Deirdre Findlay is joining the company as its new chief marketing officer. She previously worked as senior director of global hardware marketing at Alphabet’s Google (GOOG, Financial) (GOOGL, Financial).
Disclosure: No positions.
