Shares of Stitch Fix, Inc. (NASDAQ: SFIX) are down about 12% on Wednesday after the Company surpassed fourth quarter earnings expectations, but provided a softer-than-expected first quarter forecast.

The online styling service came out with earnings USD 0.07 per share during the three months ended August, ahead of Wall Street’s call for USD 0.04 per share. Sales grew 36% year-over-year, falling in-line with the average estimate of USD 432 Million for the quarter.

The Company said it grew its active client count to 3.2 million, an increase of 18% year-over-year. This number tracks the total number of users who’ve received a box of clothing from Stitch Fix in the preceding 12 months.

Average revenue per active client, which has increased all 4 quarters this fiscal year, grew 9% in the quarter.

For fiscal 2019, Stitch Fix grew its revenues 29% year-over-year to USD 1.6 Billion. It also added nearly half a million active clients.

The Company said its 2019 expenses totaled USD 679.6 Million compared with USD 493.0 Million last year. It said it’s been spending more on advertising to reach more customers, and advertising expenses grew to USD 39 Million during the latest quarter from USD 28.9 Million a year ago.

“In our second year as a public company I’m proud of how much we’ve accomplished, and the opportunities we’ve created for future growth across categories and geographies. We have built a personalization engine with incredible potential, and I’m excited to expand on our platform in new and innovative ways,” said Stitch Fix founder and CEO Katrina Lake.

For full-year 2020, the Company is forecasting net revenue in the range of USD 1.90 Billion to USD 1.93 Billion, representing growth of 20.5% to 22.5% year-over-year.