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Chewy (CHWY) -8% after Q2 report falls short of expectations
Pet product retailer Chewy (CHWY) traded down on Thursday after investors were left underwhelmed by a top and bottom line miss in Q2, despite a rise in consumer spending.
Chewy (CHWY) shares slumped 8.80% in New York on Thursday after the pet-food and product retailer came up short of Q2 forecasts, even though consumer spending had hit an “all-time high”.
During the latest three-month period, Chewy reported a $0.04 per share loss, which just came up short of the $0.02 consensus, as did revenue of $2.16bn versus $2.2bn.
While top and bottom line missed, revenue did jump 27% year-over-year, and sales growth was even better at 47%, as a large, engaged customer base bought a myriad of products.
CEO Sumit Singh noted that net sales per active customer climbed 13.5% to more than $400, while the number of active customers surpassed 20 million after rising a further 21.1%.
Singh believes that this is a great sign for the business and is bullish about the future as some COVID-19-related headwinds finally subside.
He added: “Customer engagement is growing, and we are confident in our ability to deliver strong results while navigating uncertain market conditions due to the ever-evolving COVID-19 pandemic.”
Looking ahead to Q3, Chewy expects sales to top out at $2.22bn – which would represent 25% growth – and come in at up to $9bn for the full year, the latter figure matching Wall Street forecasts.
The guidance suggests that Chewy is still benefiting from the boom in spending on pets, a trend that first took hold during the pandemic following a rise in pet adoption.
Despite some of the positive signals, investors were not ready to buy into Chewy on Thursday as its shares cratered 8.80% to $79.74 early on the New York Stock Exchange.
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