Shares of Stitch Fix Inc. (SFIX) surged 11.00% in after-hours trading on Wednesday following the release of its fourth-quarter earnings report, which exceeded analyst expectations on multiple fronts. The online personal styling service demonstrated resilience in a challenging retail environment, with results that point to potential improvements in its business model.

For the fourth quarter, Stitch Fix reported a loss of $0.07 per share, significantly better than the expected loss of $0.10 per share. Revenue came in at $311.2 million, surpassing the consensus estimate of $305.83 million. The company's adjusted EBITDA of $8.7 million also beat expectations, coming in above the estimated $6.46 million. These results indicate that Stitch Fix's efforts to streamline operations and improve efficiency are beginning to pay off.

Adding to the positive sentiment, Stitch Fix provided an optimistic outlook for the future. The company forecasts first-quarter revenue between $333 million and $338 million, well above analyst estimates of $293.12 million. For fiscal year 2026, Stitch Fix projects revenue in the range of $1.28 billion to $1.33 billion, again surpassing the $1.26 billion analyst estimate. This forward guidance suggests that the company's transformation strategy, focused on enhancing the client experience and assortment, is gaining traction and could drive sustained growth in the coming year.