Chewy announces its first profit since its IPO, in line with previous forecasts

Chewy progressed Thursday after the online retailer announced that its sales had increased 45 percent in the first quarter, as its loss declined, in line with forecasts it had issued during its recent IPO.

Chewy said that for the quarter ended May 5, its loss had been reduced to $ 29.6 million, compared with a loss of $ 59.8 million for the same period last year. The profitability of Chewy has been a concern for some. Dog food is heavy and therefore expensive to ship.

Sales reached $ 1.1 billion, up from $ 763.5 million a year ago, in line with Chewy's drive with pet owners. The company reported about 11.3 million active customers for the quarter and net sales of $ 343 per active customer.

Chewy's growth initiatives include the expansion of its private label business and the launch of Chewy Pharmacy, an online pharmacy for pets. In the first quarter, Chewy opened a pharmacy in its Phoenix, Arizona, distribution center. He has also rolled out improvements to his mobile app.

The retailer recorded auto sales of $ 743.9 million, up nearly 56% from the previous quarter.

The first quarter results, consistent with prior guidance in the Company's prospectus for its initial public offering in June, increased Chewy's stock by approximately 1%. The company's shares are down 9.5% since its inception, which had valued the company at over $ 14 billion.

Chewy, founded in 2011 by Ryan Cohen and Michael Day, claims to be "the largest online retailer of pure pet entertainment products in the United States." She has distinguished herself from many competitors by a customer service including access 24 hours a day, 7 days a week, as well as two days of online order shipping.

PetSmart, which is backed by private equity firm BC Partners, acquired Chewy in 2017 for $ 3 billion.