The company now anticipates adjusted earnings before interest, taxes, depreciation, and amortization between $49 million and $52 million for the fiscal year, a notable increase from the previous $42 million to $50 million forecast. Revenue guidance has also been adjusted upward to roughly $1.35 billion. For the third quarter, Stitch Fix narrowed its net loss to $1.53 million, or 1 cent per share, sharply improving from the $7.38 million loss recorded during the same period last year.

Chief Executive Matt Baer attributed the positive momentum to a disciplined strategy and a growing active client base, which expanded sequentially to 2.31 million users. While year-over-year client numbers remain slightly lower, net revenue per active client climbed 6.6% to $578. The company’s quarterly revenue of $340.3 million surpassed analyst estimates of $333.5 million, providing a buffer as the retailer navigates shifting consumer demand in the apparel and accessories sector.