To the moon Chewy?
Online pet retailer Chewy is a big dog now, but the company continues to grow like a young pup. Chewy released first-quarter earnings that beat expectations, posting net sales of $2.14 billion – up 32% year over year. Net income was $38.7 million and adjusted earnings were $77.4 million. It added 600,000 active customers during the quarter, compared to the fourth quarter total, bringing the number of active customers to 19.2 million. Wall Street has been worrying of late that the momentum Chewy gained during the pandemic will stall once vaccinated consumers return to stores, and offices, and begin spending less time at home with their pets.
Chewy has been something of a Wall Street pet since its June 14, 2019 IPO, but concerns about its post-pandemic prospects have had an impact recently. The stock closed at $79.35 before the after-market earnings release, up more than 250% over its $22 IPO price, but down about 35% from its 52-week high of $120 on February 16 of this year. The stock dipped slightly after the earnings release, down about 1% for most of the four hours following the release. Chewy, however, makes a convincing case that the customers it added during the pandemic will stay loyal, and that those customers’ biggest spending years are still ahead of them.
Submitted June 11, 2021 at 05:01AM by Comfortable_Buyer_80
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