For the quarter, Chewy reported net sales of $1.62 billion, representing growth of 46% year over year and topping an analyst consensus of $1.53 billion. Earnings per share was a loss of 12 cents versus a loss of 18 cent expected by analysts.
The company also reported an adjusted EBIDTA of $3.4 million and an adjusted margin of 0.2 percent, an improvement of 160 basis points compared to the year-ago quarter.
Chewy shares were volatile in the minutes following the release, but most recently were down 2.7% to $50.20.
“We had a strong start to 2020 with first quarter net sales increasing 46 percent 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,” said Chewy CEO Sumit Singh. “We are proud to be the e-tailer of choice for millions of new and existing pet parents during this unprecedented time. Chewy is well-positioned to thrive in this expanded marketplace, and we remain focused, as always, on our mission of becoming the most trusted and convenient online destination for pet parents (and partners) everywhere.”
Chewy's customer count was in line with expectations, with the company reporting 15 million active customers at the quarter's end, versus 14.95 million expected by analysts.
For the fiscal second quarter, Chewy is guiding for sales of $1.62 billion to $1.64 billion; for the full fiscal year, the company expects $6.55 billion to $6.65 billion in revenue. Analysts are modeling for $6.43 billion for the full fiscal year.
Chewy's shares have risen 75% year to date, largely on expectations that the service would see a boost from the stay-at-home environment this year.
In its last earnings release, Chewy management said they expected strong sales trends to continue. The company guided for fiscal first-quarter revenue of $1.5 billion to $1.52 billion, easily ahead of consensus estimates for $1.45 billion.