Shares of apparel-company Stitch Fix (NASDAQ: SFIX) are skyrocketing today after reporting results for its first quarter of fiscal 2021. Many traders were actively betting against a good quarter, but the company impressed Wall Street with its active-customer growth. Thanks to that surprise, the stock is soaring today, up a whopping 39% as of 10:20 a.m. EST. It even traded as much as 53% higher earlier in the day.
Looking at just the numbers, one might not understand why Stitch Fix stock is up so much today. The company generated net revenue of $490 million, which was only up 10% year over year. And it was a profitable quarter, but only came in at $0.09 per share.
However, this was a reversal from recent revenue declines and mounting losses. That's a positive development, but active-client growth is what really stole the show.
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Stitch Fix Stock Skyrockets After Crushing Expectations