Chewy Stock Soars on Earnings Beat as Auto Delivery Sales Jump

Chewy (CHWY) shares skyrocketed over 26% in early trading Wednesday after the e-commerce pet food and supplies retailer reported results that topped forecasts and announced a new stock buyback plan as its automatic delivery sales jumped.

Chewy posted first-quarter revenue of $2.88 billion, rising 3.1% from a year ago and beating analysts’ estimates compiled by Visible Alpha. Net income of $66.9 million nearly tripled from $22.86 million in the year-ago period, far exceeding expectations, while Chewy said its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) tripled year-over-year to a record $162.9 million. Diluted earnings per share came in at 15 cents, up 10 cents from a year ago.

Chewy’s Auto Shipment Sales Rise Over 6%

The company’s active customers declined 2.1% to 20 million, but net sales per active customer jumped 9.6% to $562. In addition, Chewy’s autoship customer sales increased 6.4% to $2.23 billion, and made up 77.6% of total sales, compared to 75.2% a year earlier. 

CEO Sumit Singh said that the company is “executing flawlessly on our strategic roadmap and the controllable elements of our business.”

Chewy also said its board approved an up to $500 million share repurchase program with no expiration date. 

Chewy Stock Still in Negative Territory for 2024

Shares of Chewy were up 26.2% at $21.34 as of 10:45 a.m. ET Wednesday, but even with Wednesday’s gains, Chewy shares have lost nearly 10% of their value since the start of the year.