Chewy Inc. stock rallied in the extended session Wednesday after the online pet-products retailer turned in a surprise profit and forecast a revenue range that was mostly above Wall Street estimates.
Chewy CHWY,
The company reported first-quarter net income of $18.5 million, or 4 cents a share, compared with $38.7 million, or 9 cents a share, in the year-ago period. Revenue rose to $2.43 billion from $2.14 billion in the year-ago quarter.
Analysts surveyed by FactSet had forecast a loss of 11 cents a share on revenue of $2.41 billion.
“At the time of our fourth-quarter 2021 earnings report in March, we characterized the environment as a tug-of-war between the fundamentally strong consumer demand that underpins our business and the challenging operating environment,” Chewy said in its letter to shareholders. “When evaluated through that lens, first-quarter 2022 was not much different, which is why we are even more proud of our results.”
Chewy forecast revenue of $2.43 billion to $2.46 billion for the second quarter, and reiterated its full-year forecast of $10.2 billion to $10.4 billion. Analysts had estimated revenue of $2.44 billion for the second quarter, and $10.26 billion for the year.
“While consumer demand remains resilient and pricing and cost are more aligned than they were in the second half of 2021, ongoing volatility in the macro environment continues to make accurate forecasting difficult,” Chewy said in its letter to shareholders. “Inflationary pressures and supply-chain disruptions are expected to persist and the consumer’s post-pandemic behavior continues to evolve.”
