Chewy CEO on Q2 results: “we’re very bullish on the business”

Chewy Inc (NYSE: CHWY) said on Wednesday it lost more money than expected in the fiscal second quarter. Shares of the company fell more than 10% in after-hours trading as the number of active customers came in slightly lower than Wall Street estimates.

Second-quarter financial performance

Chewy reported $17 million of loss in the second quarter that translates to 4 cents per share. In the same quarter last year, its loss stood at $33 million or 8 cents per share. The retailer of pet products, including food, generated $2.16 billion in sales that represents an annualised growth of 27%.

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According to FactSet, experts had also forecast the company to post $2.16 billion in sales, but their estimate for per-share loss was capped at 2 cents. In the prior quarter (Q1), Chewy had topped estimates.

Other notable figures and future guidance

Chewy had 20.1 million active customers at the end of Q2 – a 21% increase from last year but slightly lower than the FactSet consensus of 20.4 million, as per its earnings press release.

For the full year, Chewy forecasts up to $9.0 billion in sales, including $2.20 to $2.22 billion it expects in the current quarter.

CEO Singh’s remarks on CNBC’s “Closing Bell”

Despite the sell-off in extended trading, CEO Sumit Singh says he is “very bullish on the business”. On CNBC’s “Closing Bell”, he said:

“We like the momentum in the business evidenced in a 27% growth in revenue. Gross customer adds were about 20% higher than 2019 levels, and customer spending is at an all-time high – up 14% on a year over year basis. So, more customers that are spending more, staying with us longer, and we continue to deliver very strong comps.”

CEO Singh acknowledged that numbers were weaker than the COVID-driven peak last year, but “that was expected”. Overall, however, he was positive that engagement and conversion on the company’s platform was still strong.

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