Stitch Fix forecast revenue growth in the fiscal year ahead as its latest quarterly results beat Wall Street’s expectations as it gained market share.

The online personal-styling-services company said Wednesday it expects revenue to grow between 1% and 5%, to a range of $1.28 billion to $1.33 billion for the fiscal year. Analysts polled by FactSet were looking for $1.23 billion.

For the current fiscal first quarter, Stitch Fix expects sales of $333 million to $338 million, or up 4.4% to 6% from a year ago.

Stitch Fix shares dropped 5.1% in aftermarket trading, after soaring more than 24%.

The forecast for positive revenue growth comes after the company gained share in the U.S. apparel market and notched its second consecutive quarter of revenue growth on an adjusted basis, factoring in an extra week of sales in the year-ago period, Chief Executive Matt Baer said.

The company expects growth to continue as it embraces artificial intelligence and its assortment of leading brands, Baer said.

In the recent quarter, the company narrowed its loss to $8.6 million, or 7 cents a share, from a loss of $36.5 million, or 30 cents a share, in the prior-year period. Analysts polled by FactSet expected a loss of 10 cents.

Revenue fell 2.6%, to $311.2 million, ahead of analyst estimates of $305.8 million. On an adjusted basis, revenue rose 4.4%, the company said.

Stitch Fix had 2.3 million active clients at the end of the quarter, representing declines of 1.9% and 7.9% from the prior quarter and year-earlier period, respectively. Net revenue per active client rose 3% from the year-ago period.