Chewy Posts Better-Than-Expected Revenue

Pet products online merchant results boosted by stay-at-home orders.
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Online pet products retailer Chewy, Inc. CHWY posted better-than-expected second-quarter revenue, as online sales of pet products rose thanks to the effects of stay-at-home orders caused by the COVID-19 pandemic.

The online retailer said revenue grew 47% to $1.7 billion for the just-completed period. It reported a net loss of $32.8 million, including a share-based compensation expense of $37.8 million.

Chewy did not offer an earnings-per-share breakdown.

It said adjusted earnings before income taxes, depreciation and amortization (EBITDA) came in at $15.46 million vs. a loss of $29.18 million a year ago.

Chewy had been expected to report a loss of $47.1 million, on sales of $1.6 billion, based on a FactSet survey of 9 analysts.

“We are proud of our teams, who continued to execute under difficult, pandemic-related circumstances, while again setting new records for both net sales growth and new customer additions, and producing our second consecutive quarter of positive adjusted EBITDA,” Sumit Singh, Chewy CEO said in a statement. 

“As e-commerce undergoes meaningful changes, multi-year growth curves have been compressed into timeframes measured in quarters, if not months. Over the past few years, we have invested in technology, new businesses, fulfillment capacity, and in building an extraordinary team. This has prepared us to quickly adapt to the acceleration of our own growth curve,” Singh added.

For the year, analysts project revenue of $6.7 billion.

The stock has risen about 19% since the company last reported earnings on June 9.

Shares of Chewy fell $1.38, or 2.3%, to  $58.25 in after-hours trading on Thursday.  In the regular session the stock had fallen 2.9% on a down day for Wall Street.