Online styling service Stitch Fix saw a 22% jump in revenue to $451.8m (£346.4m) for the three months to 1 February, falling below analyst expectations.
For the second quarter, the San Francisco-based business announced a 17% rise in active clients to 3.5 million and net revenues per customer increased by 8.3% to $501 (£384).
However, analysts had expected revenues of around $452.6m (£346.3m) and net revenue per client of $503.70 (£386.2).
Stitch Fix said it witnessed “heightened promotional activity across retail” during the holiday period resulting in customers spending less per order than projected.
Founder and CEO, Katrina Lake added: ”As we continue to evolve our personalization capabilities we’re confident in our ability to capture additional market share.”