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- The online pet supplies retailer reported net sales of $ 1.1 billion, a 45% improvement over the same period last year. It also reduced its net loss by half, from $ 59.8 million to $ 29.6 million.
- Nevertheless, the stock is up 49% over the price offered until Thursday's close.
- The quarter that ended May 5th also saw the launch of Chewy Pharmacy, an online business that will allow owners to set up recurring shipments of pet drugs.
- Watch the Chewy Trade Live here.
Chewy fell 7.5% Friday morning after the company posted its quarterly profit for the first time since its IPO in June.
These results are largely positive. The online retailer of pet supplies has reported results in line with the annual forecast presented in its prospectus. Chewy closed the loss at $ 29.6 million compared to $ 59.8 million the previous year and had approximately 11.3 million active customers in the quarter ending May 5.
Nevertheless, the badysts have expressed their concern about the valuation of the company. Its stock had risen 49% until closing Thursday, in the context of growth prospects.
Here are the key figures:
- Business figure: $ 1.1 billion compared to $ 763.5 million in the same quarter of the previous year
- Net loss: $ 29.6 million compared to $ 59.8 million in the same quarter of the previous year
- Gross margin: 22.9%, up 330 basis points from the previous year
The first quarter of his business since his IPO has seen the growth of his private label and a launch for his online pharmacy business. Chewy Pharmacy will allow homeowners to install recurring medication shipments for their pets.
Chewy already allows a similar shipping function for other rechargeable products such as foods. Automated sales increased by approximately 56% over last quarter, reflecting the popularity of the feature with Chewy customers.
"We will continue to innovate by focusing on providing the best possible customer experience as part of our mission: to become the most reliable and convenient online destination for pet parents", said Sumit Singh, CEO of Chewy.
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Shares of the company closed at $ 32.85 on Thursday, a decrease of about 4.4% from the day of its IPO on June 14. The stock price was set at $ 22 during the company's initial public offering. The market capitalization of Chewy was about $ 13 billion at the close of Thursday.
PetSmart acquired Chewy in 2017 for $ 3 billion. The distribution chain is controlled by private equity firm BC Partners.
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