Chewy's fourth-quarter revenue grew 13.4%, and it plans to start international expansion!

It is learned that according to foreign media reports, on March 22, the US pet e-commerce Chewy released its fourth quarter and full-year financial report for fiscal year 2023 ending January 29. At the same time, the company announced that it is preparing for international expansion.

In the fourth quarter, Chewy's net sales were $2.7 billion, up 13.4% year-over-year; net income was $6.1 million, compared with a loss of $636 billion in the same period last year. For the full year, Chewy's net sales increased 13.6% year-over-year to $10.1 billion; gross margin expanded 130 basis points to 28%. The company turned a profit, with full-year net income turning from a loss of $73.8 million to $49.2 million.

Chewy plans to enter markets outside the United States for the first time. The company's CEO Sumit Singh said: "International expansion has always been part of our strategy, and it is only a matter of time before Chewy expands to other regions. We are actively building capabilities and teams to launch our first international market in the coming quarters."

Other Chewy executives said the company plans to bring "all components of our value proposition" to new markets while actively listening to customer feedback in those areas.

"We expect this important development to unlock meaningful incremental growth, with Chewy reaching a broader customer base and resonating strongly with them," Mit Singh further said.

As for which market to enter, Mit Singh did not give a specific answer, but only said that factors such as the size of the TAM, geographical proximity to the United States and similarities in consumer behavior will be taken into consideration.

Notably, Chewy's active customer base fell 1.2% year over year to 20.4 million in fiscal 2023, which Mit-Singh attributed to continued weakness in discretionary spending and the residual impact of customer base losses in 2020 and 2021.

"We expect active customer growth to return to positive territory this year and anticipate continued strength in net sales per active customer," Singh said.

Looking ahead to 2023, Chewy expects first-quarter net sales to be between $2.72 billion and $2.74 billion, an increase of 12% to 13%. The retailer also expects full-year net sales to be between $11.1 billion and $11.3 billion, an increase of 10% to 12%.

Editor ✎ Nicole/

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