The e-commerce pet-care retailer Chewy Inc. (NYSE: CHWY) reported better-than-expected revenue for the first quarter. Chewy sales boosted recently after a decrease in shopping trips to the physical stores as many consumers opt for home delivery in this pandemic. According to the research from commercial café, more than 27% of Americans would order pet food online to ensure the needs of their pets are met, while only about 16% did so prior to the outbreak.
Earnings per share (EPS) $0.12 vs. $0.16 expected
Revenue $1.62 billion vs. $1.53 billion expected
“We had a strong start to 2020 with first-quarter net sales increasing 46 per cent year-over-year and gross margins expanding 50 basis points. We also achieved a significant milestone by delivering our first-ever quarter of positive adjusted EBITDA,” stated Sumit Singh, CEO of Chewy. “We are proud to be the e-tailer of choice for millions of new and existing pet parents during this unprecedented time.”
The company said it ended the quarter with 15 million active customers, up from 11.3 million the year prior. The other good news is, so far this year ratings in the Google Play Store have grown in number for Chewy's app by more than 39%. The company expecting revenue for this year to range from $6.55 billion to $6.65 billion, While Wall Street is expecting revenue to come in at $6.41 billion.
The chewy stock closed 5.6% higher on Tuesday. The company shares have climbed 75% since the beginning of the year and the stock hit a 52-week high earlier Tuesday.