Chewy Inc stock (NYSE: CHWY) soared more than 25% in extended trading on Wednesday after the pet products retailer reported a surprise profit for its fiscal Q1 and offered solid full-year guidance.
Chewy Q1 earnings snapshot
Net income printed at $18.5 million versus the year-ago figure of $38.7 million.
Per-share earnings of 4 cents were significantly lower than last year’s 9 cents.
Revenue jumped 14% YoY to $2.43 billion, as per the earnings press release.
FactSet consensus was for 11 cents of per-share loss on $2.41 billion in revenue.
Gross margin was down 10 bps to 27.5% in the recent financial quarter.
The stock is still down nearly 50% for the year. In the earnings press release, CEO Sumit Singh said:
Our Q1 results are a testament to the resiliency of the pet category and clearly demonstrate our ability to execute against our strategic priorities. Moving forward, Chewy’s value proposition is as compelling as ever and we continue to innovate robustly, attract customers with high lifetime values, drive engagement, and capture greater share of wallet.
Chewy guidance for the future
Chewy now forecasts $10.2 billion to $10.4 billion in revenue this year, including up to $2.46 billion it expects in the fiscal second quarter.
In comparison, analysts had called for $2.44 billion in revenue for Q2 and $10.26 billion for the full financial year. Chewy said in the letter to shareholders:
While consumer demand remains resilient and pricing and cost are more align than they were in H2 of 2021, ongoing volatility in the macro environment continues to make accurate forecasting difficult. Inflation and supply constraints are expected to persist and the consumer’s post pandemic behaviour continues to evolve.
The post Chewy stock soared 25% in extended trading: explore why appeared first on Invezz.