Shares of Stitch Fix (NASDAQ: SFIX) surged 28% on Wednesday following the online personalized-apparel retailer's Tuesday-afternoon release of its report for the third quarter of fiscal 2023 (ended April 29).

The stock's gain is probably attributable to investors -- or more likely, short-term traders -- primarily focusing on the quarter's revenue and earnings surpassing Wall Street's estimates. Indeed, they did, though both results were bad -- just not as bad as analysts had expected. 

The company's two key customer metrics continued to decline year over year. They also fell sequentially. Given these downward trending metrics, it perhaps wasn't surprising that management's revenue guidance for fiscal Q4 was lighter than Wall Street had been projecting.

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Source Fool.com