When Stitch Fix Inc. (NASDAQ: SFIX) reported its fiscal third-quarter financial results after the markets closed on Wednesday, the firm posted $0.07 in earnings per share (EPS) and $408.9 million in revenue. The consensus estimates had called for a net loss of $0.03 per share and revenue of $394.85 million, while the same period of last year reportedly had EPS of $0.09 on $316.74 million in revenue.

During the most recent quarter, the company reached 3.1 million active clients, a 16.6% increase year over year, and grew net revenue by 29.1% in that time.

The growth in net revenue reflected growth in both active clients and net revenue per active client, which were largely driven by healthy year-over-year growth in the Women’s segment and continued scaling of the Men’s segment.

Gross margin was 45.1% for the quarter, compared to 43.6% in the third quarter of last year. This represents the fifth consecutive quarter of year-over-year gross margin improvement. This strength was driven by both lower clearance activity and lower shrink expense year over year.

Looking ahead to the fiscal fourth quarter, the company expects to see net revenues in the range of $425 million to $435 million and adjusted EBITDA of $5 million to $10 million. The consensus estimates are $0.03 in EPS and $421.27 million in revenue for the quarter.

Katrina Lake, Stitch Fix founder and CEO, commented:

Q3 was another strong quarter for us, delivering net revenue of $408.9 million, exceeding our guidance and representing 29% year-over-year growth. We grew our active clients to 3.1 million, an increase of 17% year over year. At the same time, we continue to drive engagement with our existing client base, growing revenue per active client 8% year over year. These results demonstrate our ability to attract new clients and to serve our existing clients well. The continued strength of our Women’s category and the growth of our Men’s category give us even more confidence in our ability to scale new categories and geographies. As I look forward, I’m excited about the opportunities ahead to delight even more clients around the world.

Shares of Stitch Fix traded up about 19% Thursday morning to $28.08, in a 52-week range of $16.05 to $52.44. The consensus price target is $36.63.

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