Chewy Releases First Financial Results Since Market Debut

Online retailer of pet food and other pet related products, Chewy.com, just reported its first earnings
release since the company went public.

For the first quarter, Chewy.com reported that sales climbed 45%. The company said it generated $1.1 billion in sales in its first quarter, recording a net loss of $29.6 million.

The results are in line with previous guidance set forth in the company’s prospectus for its IPO.

Chewy reported that its loss narrowed to $29.6 million from a loss of $59.8 million in the year-ago period.

Sales rose to $1.1 billion from $763.5 million a year ago and there were roughly 11.3 million active customers for the quarter as well as $343 in net sales per active customer.

Chewy also said that it recorded auto-ship sales of $743.9 million, up nearly 56% from the quarter prior.

Chewy was founded in 2011 by Ryan Cohen and Michael Day. The company says that it is “largest pure-play pet e-tailer in the United States.” The company was acquired by PetSmart in 2017 for $3 billion.

CEO Sumit Singh remarked on the earnings call, “We are excited to report our first quarterly results as a public company. I want to extend special thanks to our new investors for their confidence in our team and our company. I’d also like to thank the Chewy team for the support during the IPO process.”

He also said, “There are currently more than 10,000 Chewy employees known as Chewtopians across the country, who are united by a goal to provide each customer with best-in-class service every day. From our headquarters in South Florida and Boston, to our customer service and fulfillment centers across the country, we are passionate about our work and are constantly thinking of new ways to make the customer experience even better.”

“The pet industry is a large and growing market with approximately $70 billion in annual spend in 2017. In addition the pet care market is resilient during economic downturns, because of the nature of the pet parent/pet relationships and is experiencing a secular shift from offline channels into online. Pet humanization and the increased focus on pet health and wellness are also notable trends that are driving growth in the pet industry.”

Disclaimer: We have no position in Chewy Inc. (NYSE: CHWY) and have not been compensated for this article.