However, Chewy reported that supply constraints caused some products to run out of stock, negatively impacting quarterly earnings.
Finally, Chewy shares were trading at $ 77.48, down 2.4%. They closed Thursday at $ 79.35, up 2% from regular trading.
The company in Dania Beach, Florida, which ended May 2, made a profit of 9 cents per share, compared to a loss of 12 cents per share in the year-ago quarter.
Revenues ranged from $ 1.62 billion to $ 2.14 billion.
An analyst study by FactSet produced a consensus estimate of a GAAP loss of 3 cents per share for $ 2.12 billion in earnings.
“[Elevated] Out-of-stock levels have been a persistent headwind throughout the quarter, with net sales declining by an estimated $ 40 million in the first quarter, “Chewy said in a statement.
“The headwinds across these industries are supply-driven, and we expect them to weaken in the second half of this year as additional capacity goes online.
“Until then, we will actively manage our inventory and use our recommendation engine to help our customers find attractive alternatives.”
On the plus side, the company’s active customer base grew 32% year-over-year, with Chewy gaining 19.8 million customers at the end of the quarter.
Broadly speaking, over the last two years, the active customer base has grown by 75%, or 8.4 million customers.
The weighted average retention period for active customers is less than two years. “In other words, our average active customer is still straight to the left of the lifetime spending curve with us,” the company said.
Net spending per active customer increased $ 31 (8.7%) in the first quarter to a total of $ 388.
Gross profit margin for the first quarter increased 4.2 points to 27.2%.
Chewy also said it was in a fresh and cooked pet food space.
The company said it has developed and patented a sustainable package that allows it to “maintain product quality throughout the delivery process.”
The product is in beta mode. Chewy said it will begin distribution in three areas, covering approximately 60% of its customer base. It didn’t specify where.
Most recently, Chewy said in late May that it expanded the capabilities of its Connect With a Vet telemedicine service.
New features include video consultations with veterinarians, the ability to pre-schedule virtual consultations with veterinarians, and lengthy surgery.
Chewy Posts Surprise Profit; Supply Issues Hurt Revenue Source link Chewy Posts Surprise Profit; Supply Issues Hurt Revenue