By Chewy, the online pet retailer, has reported a decline in net income despite a rise in sales. Here are the key details you need to know:
Net Income
Chewy’s net income for the quarter was $18.9 million, down from $22.3 million in the same period last year. Analysts had expected a loss of $22.5 million, according to FactSet.
Sales
The company, based in Plantation, Fla., recorded sales of $2.78 billion, up from $2.43 billion in the year-ago period. Analysts had expected sales of $2.76 billion.
Adjusted Earnings
Chewy reported adjusted earnings of 15 cents per share, which remained flat compared to the prior-year period. Analysts had expected adjusted earnings of 10 cents per share.
What We Watched
Active Customers: Chewy reported a decline in active customers, with 20.4 million in the second quarter compared to 20.5 million a year earlier. This marks the third consecutive quarter of decline and is closely scrutinized by investors and analysts.
Commentary: The company’s CEO, Sumit Singh, and interim CFO, Stacy Bowman, stated in a letter to shareholders that they see potential for returning to net adds growth in the second half of the year. However, they did acknowledge recent trends and noted a wider range of potential outcomes.
Canada Expansion: Chewy confirmed that its plans to expand into the Canadian market are on track for the third quarter.
In conclusion, while Chewy experienced a decline in net income, sales rose during the quarter. The company remains optimistic about its prospects for the future and is focused on addressing customer metrics and expanding into new markets.
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