Chewy fetches more loyal customers and catches an earnings beat
Investors say, “Good boy,” as Chewy’s active customer base went up for the first time in two years.
Chewy posted fourth-quarter results that topped earnings estimates as the company said it notched its first year-over-year growth in active customers in two years, thanks to strong loyalty from its Autoship program.
Shares rose 0.8% in recent trading; they had jumped as much as 4% Wednesday morning before the gains faded.
The company posted adjusted earnings of $0.28 for the quarter, easily topping analysts’ forecast of $0.21. Revenue came in at $3.23 billion, edging past the expected $3.2 billion, while cash flow hit a record $425.5 million.
CEO Sumit Singh said Chewy’s growth and profitability outperformed expectations, crediting the company’s booming sponsored ads business and a shift toward premium pet products.
Looking ahead, the company expects first-quarter sales between $3.06 billion and $3.09 billion — 6% to 7% growth and ahead of analysts’ estimates of $3.04 billion. Full-year guidance also came in above forecasts, even when adjusting for an extra week in 2024.
Chewy shares have more than doubled in value over the past year.
