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Chewy Posts Surprise Quarterly Profit

Online pet-supply retailer Chewy, which sells items such as food, toys and leashes for pets, reported fiscal fourth-quarter results well above Wall Street estimates.

Chewy  (CHWY) - Get Chewy, Inc. Class A Report, the online pet-care provider, reported a surprise profit for its fiscal-fourth quarter as revenue nearly doubled amid surging online orders.

For the quarter ended Jan. 31, Chewy reported better-than-expected earnings of $21 million, or 5 cents a share compared to a loss of $60.9 million, or a loss of 15 cents a share in the year-ago period.

Revenue for the quarter increased 51.1% to $2.04 billion, also exceeding analysts' expectations, from $1.35 billion in the same period a year ago.

A survey of analysts by FactSet produced consensus estimates of a GAAP and adjusted loss of 10 cents a share on revenue of $1.97 billion.

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"Years of preparation and focus have positioned us as the Internet’s preeminent neighborhood pet store and a leading pure-play e-commerce company in the pet space," said Chief Executive Sumit Singh in a statement.

"We look forward to a future marked by ongoing innovation and to winning customers’ hearts and minds as we grow to become the most trusted and convenient online destination for pet parents (and partners) everywhere," Singh added.

Chewy forecast revenue of $2.11 billion to $2.13 billion for the first quarter, and $8.85 billion to $8.95 billion for the year. 

For the full fiscal-year 2022, the FactSet survey is calling a GAAP loss of 8 cents, or an adjusted loss of 11 cents, on revenue of $8.85 billion.

Shares of the Diana Beach, Fla., company rose 9.29% to $87.91 at last check. Chewy closed the regular Tuesday trading session 1.94% higher at $80.38.