The company reported progress on its turnaround strategy.
Stitch Fix (SFIX) shares jumped over 7% in extended trading on Tuesday after the company reported better-than-expected quarterly results and raised the forecast for its current fiscal year ending in July.
The company, which offers personalized clothing and accessories, expects $1.254 billion to $1.259 billion in FY25, up from its previous forecast of $1.225 billion to $1.240 billion.
It also bumped its adjusted EBITDA forecast to $43 million-$47 million from $40 million-$47 million earlier.
The raise comes after a strong third quarter. Revenue rose 0.7% to $325 million, beating analysts' expectations of $314.4 million.
Its adjusted loss narrowed to $0.06, better than the expected $0.12 per share loss.
"Our performance, which exceeded expectations, is the direct result of the strength of the Stitch Fix value proposition," CEO Matt Baer said in a statement.
"Now (we are) in the growth phase of our transformation."
Over the past year, Stitch Fix has cut costs by exiting the UK and closing facilities, refreshed its brand, and introduced new tools to boost client-stylist engagement.
On Stocktwits, retail sentiment shifted to 'extremely bullish' from 'bullish' the previous day.

A user said, "$SFIX turnaround appears set."
SFIX shares are up 11.2% year-to-date.
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