shares were trading lower late Thursday after the online pet products company posted better than expected results for the first fiscal quarter of the company.
For the quarter ending May 2, Chewy (ticker: CHWY) reported revenue of $ 2.14 billion, up 32% from a year ago, and slightly above the company’s guidance range of $ 2.11 billion to $ 2.13 billion and the street consensus forecast of $ 2.13 billion.
Net income was $ 38.7 million, or 9 cents a share, ahead of Street’s consensus forecast for a loss of 3 cents a share. Adjusted Ebitda (earnings before interest, taxes, amortization and depreciation) was $ 77.4 million, up from $ 3.4 million a year ago.
Chewy said it now has 19.8 million active clients, up 32% from a year ago. Net sales per active customer for the last 12 months were $ 388, 8.7% more than a year ago.
Chewy said that while he was satisfied with sales for the quarter, “high levels of out-of-stock” were a hindrance during the quarter and reduced sales by approximately $ 40 million. “These industry-wide headwinds are driven by supply and we expect them to decline in the second half of the year as additional production capacity comes online,” the company said in a letter to shareholders. “Until then, we will continue to actively manage our inventory and use our recommendation engines to help customers find attractive alternatives.”
For the second fiscal quarter, Chewy projects revenue of $ 2.15 billion to $ 2.17 billion, an increase from 26% to 28%, and just ahead of the street consensus at $ 2.13 billion. For the fiscal year of January 2022, Chewy now sees revenue of $ 8.9 billion to $ 9 billion, in line with Street’s consensus forecast of $ 8.95 billion. Chewy’s previous guidance was $ 8.85 billion to $ 8.95 billion. The company expects its full-year adjusted Ebitda margin to expand from 80 to 120 basis points beginning in fiscal 2021 (one basis point equals one-hundredth of a percentage point).
In recent trading, Chewy shares fell 2.3% to $ 77.53.
Write to Eric J. Savitz at [email protected]