Pet Supplies Retailer Chewy's Q3 Performance Builds On Q2 Momentum, Raises Annual Outlook

On Wednesday, Chewy Inc. CHWY reported a third-quarter adjusted EPS of $0.20, up 33.3% year-over-year, compared to the consensus of $0.08.

The retailer of pet supplies reported sales of $2.88 billion, compared to the consensus of $2.90 billion and the management guidance of $2.84 billion—$2.86 billion.

Autoship customer sales reached $2.30 billion, up 8.7%. Autoship customers are customers in a given fiscal quarter for whom an order has shipped through the Autoship subscription program during the preceding 364-day period.

Also Read: Roaring Kitty Ditched Chewy, Analyst Says You Should Adopt The Stock With ‘Path To Pawsitive Growth'

Net Sales Per Active Customer increased by 4.2% to $567.

"Our third quarter results continued to build on the positive momentum we observed in Q2," said Sumit Singh, Chief Executive Officer of Chewy. "We delivered topline growth exceeding the high-end of our net sales guidance range, a sequential increase in active customers, continued adjusted EBITDA margin expansion, and robust free cash flow generation," Singh added.

Guidance: For fiscal year 2024, the company expects sales of $11.79 billion—$11.81 billion, up around 6% year over year, compared to prior guidance of $11.6 billion—$11.8 billion and the consensus of $11.878 billion.

The company raised its 2024 adjusted EBITDA margin guidance to 4.6% – 4.8% compared to prior guidance of 4.5%-4.7%.

Chewy expects fourth quarter 2024 sales of $3.18 billion-$3.20 billion compared to the consensus of $3.174 billion.

Price Action: CHWY stock is down 9.64% at $30.38 at last check on Wednesday.

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