DANIA BEACH, Fla. — Chewy, Inc.’s first financial report since going public was optimistic for shareholders, as it reported net sales growth of 45.2% year-over-year to $1.1 billion. It also cut its net loss in half year-over-year, from $59.8 million to $29.6 million for the quarter ended May 5.
“We will continue to innovate with a keen focus on delivering the best customer experience as we execute on our mission to become the most trusted and convenient online destination for pet parents,” said Sumit Singh, CEO of Chewy.
The company’s subscription model delivered consistent sales throughout the quarter, Singh said, resulting in 3.5 million new “active customers,” bringing the total to 11.3 million.
“Net sales per active customer increased approximately 9% from $315 dollars to $343 dollars. Autoship customer sales, as a percent of net sales, represented 67.1% of our revenue,” Singh added.
Singh also pointed out its gross margin was up 330 basis points year-over-year to 22.9%, reflecting the company’s continued efforts to improve the efficiency of its supply chain and its product margin.
Chewy’s EBITDA margin improved by 530 basis points. This was a result of the company’s gross margin expansion and mitigation of operating expenses, according to Singh.
“We're on a mission to become the most trusted and convenient online destination for pet parents, offering a broad assortment of pet products, supplies, and prescriptions at competitive prices coupled with a high-touch personalized customer experience and fast, reliable delivery,” Singh said.
To pursue its mission, Chewy has innovated its offerings to include a mobile app, pharmacy service and customer service initiatives.
Mario Marte, chief financial officer for Chewy, added, “As we begin life as a public company, we want to ensure that we provide clarity and transparency to our shareholders into how we operate the business, while maintaining our long-term focus, as well as our ability to move quickly to capitalize on growth opportunities, or to make the right investments which will maximize value for our customers, company and shareholders.”
Chewy announced an IPO to trade Class A shares of common stock on April 29. When the company officially went public on June 14, its stock price opened at $36, which was 64% above its IPO, and closed at $34.99.
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