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Chewy Shares Up; Net Loss Flat, Pretax Loss Beats Estimate

Sales for the quarter were $1.23 billion, up 40% and exceeding Wall Street's expectations.
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Chewy  (CHWY) - Get Chewy Inc. Class A Report shares rose after hours Monday as the pet-food-delivery company reported a fiscal-third-quarter loss flat with a year earlier and a narrowed pretax loss.

For the quarter ended Nov. 3 the Dania Beach, Fla., company reported a net loss of 20 cents a share, flat with the year-earlier quarter. Net sales increased 40% to $1.23 billion.

Analysts surveyed by FactSet were expecting Chewy to report a loss of 16 cents a share on revenue of $1.2 billion.

The company's adjusted loss before interest, taxes, depreciation and amortization was $30.2 million, compared with Wall Street expectations of a loss of $39.5 million.

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In addition, gross-profit margin in the quarter was 23.7%, 4.1 percentage points wider than the year-earlier figure. Gross margin for the pharmacy business fattened by more than 6.5 percentage points.

Chewy went public June 14, pricing its IPO at $22 a share. Chewy shares were 0.7% higher after hours. They'd closed the regular session down 3.1% at $24.18. Since the public offering they've traded as high as $41.34, on their first day of trading.

The post-IPO lockup period expires later this week. More than 80% of the company’s shares outstanding are subject to the six-month lockup rule, so once that restriction expires, the stock could be in for some volatility.