Shares of Chewy (NYSE:CHWY) surged more than 13% in extended trading Wednesday after the pet retailer posted earnings that beat Wall Street’s estimates.
Earnings per share came out at five cents, versus a loss of four cents a share expected, on revenues of $2.78 billion, versus $2.73 billion expected
The company’s reported net income for the three-month period that ended April 30 was $22.18 million, compared with $18.47 million, a year earlier.
Sales rose to $2.78 billion, up 14.7% from $2.43 billion a year earlier.
Net sales per active customer and sales from autoship customers reached record highs in the quarter.
Gross margins were up about one percentage point.
The earnings beat comes after the retailer posted its first annual profit at the close of fiscal 2022 earlier this year, but noted the pet industry was seeing softness in discretionary and hard goods categories, which carry higher margins than consumables such as pet food.
Said CEO Sumit Singh, “2023 is off to a strong start for Chewy. Our first quarter results reflect accelerating double-digit topline growth and continued expansion of adjusted EBITDA margin. Net sales per active customer and Autoship customer sales also both reached new record highs for the company and continued to fuel customer loyalty and spend towards our platform.”
CHWY shares $7.25, or 24.6%, to $36.74.