Shares of Stitch Fix Inc. (NASDAQ: SFIX) surged 10.28% in after-hours trading on Wednesday following the release of the company's fourth-quarter earnings report, which exceeded Wall Street expectations. The online personal styling service demonstrated resilience in a challenging retail environment, posting better-than-anticipated financial results and providing an optimistic outlook for the coming fiscal year.

For the fourth quarter, Stitch Fix reported a loss of $0.07 per share, significantly beating the consensus estimate of a $0.10 loss. Revenue came in at $311.22 million, surpassing analysts' projections of $305.83 million. Despite a 2.6% year-over-year decline in revenue, the company's performance was viewed positively when adjusting for the impact of an extra week in the previous fiscal year's fourth quarter.

Adding to investor enthusiasm, Stitch Fix issued robust guidance for fiscal 2026. The company forecasts revenue between $1.28 billion and $1.33 billion, exceeding the Street's estimate of $1.26 billion. This outlook, coupled with the better-than-expected Q4 results, signals potential growth and improved operational efficiency in the coming year. CEO Matt Baer highlighted the company's success, stating, "Fiscal 2025 was a milestone year for Stitch Fix. We finished the year with our second consecutive quarter of year-over-year revenue growth on an adjusted basis, and once again gained share in the U.S. apparel market."