Shares of Stitch Fix (NASDAQ: SFIX) spiked 25% on Wednesday after the Company reported it beat third quarter earnings and revenue expectations. The personal styling company earned USD .07 per share, compared to a loss of USD .03 anticipated by analysts. Revenue came in at USD 408.9 Million, topping the average estimate of USD 394.9 Million.

For the period ended April 27, Stitch fix grew its active client count to 3.1 million, a 17% increase year-over-year. “These results reflect our continued execution across three of our growth pillars; expanding relationships with existing clients, attracting new clients, and growing our market opportunities,” said Chief Executive Officer, Katrina Lake. The brand continues to ramp up its men’s and kids categories, which launched in September 2016 and July 2018, respectively. It also officially began doing business in the UK last month.

In a letter to shareholders, the Company said it used “predictive algorithms” to better reach and retain female clients. Stitch Fix also gave credit to its Style Pass service for improving client retention. Style Pass offers unlimited styling for a yearly fee of USD 49. Normally a client is charged a USD 20 fee per Fix. Stitch Fix said renewal rates for Style Pass were 70% across both its men’s and women’s business.

Company management now expects full-year 2019 revenue to fall between USD 1.57 Billion and USD 1.58 Billion, up from its previous forecast of USD 1.53 Billion to USD 1.56 Billion. Fourth quarter revenue should range between USD 425 Million and USD 435 Million, the Company said.

Stitch Fix stock has gained about 39% over the past 12 months.