Shares of Stitch Fix Inc. (NASDAQ: SFIX) surged 8.35% in pre-market trading on Wednesday, following the release of the company's impressive third-quarter fiscal 2025 financial results and an upward revision of its full-year guidance.

The online personal styling service reported a narrower-than-expected loss of $0.06 per share for the quarter ended April 30, beating analyst estimates of a $0.11 loss. Revenue for the quarter came in at $325 million, surpassing expectations of $314.4 million and marking a slight increase of 0.7% year-over-year. This unexpected return to growth was attributed to positive customer responses to Stitch Fix's enhanced flexibility and stronger product assortment.

In light of the strong performance, Stitch Fix raised its fiscal 2025 revenue guidance to a range of $1.25 billion to $1.26 billion, up from the previous forecast of $1.23 billion to $1.24 billion. The company also reported an increase in net revenue per active client, rising 3.2% year-over-year to $542, despite a slight decline in the total number of active clients. CEO Matt Baer highlighted improvements in the client experience, including larger "fixes" of up to eight items for existing clients and a higher variety of on-trend styles, which drove higher average order values. The market's enthusiastic response to these results and the upgraded outlook suggests renewed confidence in Stitch Fix's ability to navigate challenges in the e-commerce and personalized styling space.