Shares of Stitch Fix (NASDAQ: SFIX) soared over 35% in pre-open trading Tuesday after the company delivered quarterly results that topped market estimates.

Stitch Fix, an online personal styling service, earned $0.09 per share on revenue of $490.4 million in the quarter ending October 31. This is much better than a loss of $0.20 per share on revenue of $481.2 million.

“This quarter we are proud to have achieved several multi-year highs, including our highest sequential client addition on record and the highest level of successful first Fixes in the past five years. Our powerful personalization engine is evolving, and innovations in our Fix and direct buy offerings will expand our addressable market, deepen client engagement and grow wallet share over time,” said founder and CEO Katrina Lake.

The company said its base of active clients rose by over 10% to almost 3.8 million. It also said it expects to continue growing at a rapid pace in the future.

“We're excited about the momentum in our business, confident in the future ahead, and we expect to deliver between 20% and 25% growth for the full year,” added Lake.

In separate news, SFIX announced that Dan Jedda has joined the company to become new CFO, starting from December 9, 2020.

Jedda joins from Amazon where he acted as a Vice President and CFO for Digital Video Digital Music, and the Advertising and Corporate Development organizations.

“I am thrilled to be joining Stitch Fix at such an exciting time, when unprecedented consumer shifts to shopping online present such a significant opportunity for the business. I look forward to working with such an innovative company as it serves more consumers in highly personalized, relevant and convenient ways. I can’t wait to join Katrina and the leadership team,” said Jedda.

Lake commented that Jedda will bring “extensive experience funding and scaling some of the most innovative businesses at Amazon”.

Analysts praised SFIX for delivering another strong quarter. RBC analyst Mark Mahaney reiterated an “Outperform” rating and raised the price target to $64.00 per share from $50.00.

“We see SFIX benefitting from the COVID-accelerated secular shift to Online (tho Online Apparel sales remain subdued) and product improvements driving First Fix Success Rates,” Mahaney wrote in today’s research note.

The analyst added that SFIX remains the firm’s “#1 Small Cap Long,” due to three key drivers:

1) SFIX remains a very good COVID Recovery Play -- when Social Mobility eventually/hopefully recovers in ’21, SFIX should benefit from a LOT of pent-up fashion apparel demand;

2) SFIX is an excellent Product Cycle Play – the RH Active Client Net Adds were largely driven by personalization/algorithm improvements that drove RH Fix Success Rates (the % of items in a Fix that are purchased) and very robust First Fix Success Rates (the % of clients who purchase at least one item in their 1st Fix and look forward to their 2nd Fix).

3) SFIX’s valuation remains highly reasonable.

Similarly, Needham’s Rick Patel says that he expects F2H21 to be significantly better than F1H21.

“For the past couple of years, we think the market has been concerned about slowing client growth, with some investors questioning SFIX’s TAM. As SFIX leans on new initiatives and executes better, the acceleration of client growth appears to be throwing cold water on a major bear-case talking point. We are bullish on SFIX’s Direct Buy (which is increasing wallet share), and foresee its new Fix Preview feature (tested in the U.K., with U.S. rollout later in FY21) yielding stronger conversion, AOV, and customer satisfaction,” Patel wrote in a note sent to clients today.

He rates SFIX as a “Buy” with a price target hiked to $55.00 from prior $46.00 on higher estimates and greater confidence.