Chewy's third quarter financial report is out! Revenue of $2.532 billion exceeds expectations!

It is learned that on December 8, the US pet e-commerce platform Chewy released its financial results for the third quarter of 2022. Due to the return on investment in logistics and distribution, the company's revenue and net profit exceeded expectations this quarter.

The financial report shows that in the third quarter, Chewy's revenue was US$2.532 billion, exceeding market expectations (US$2.46 billion) by 2.93%; earnings per share were US$0.01, exceeding market expectations (-US$0.09) by 111.11%.

The company's net sales in the third quarter reached US$2.53 billion, an increase of 14.5% over the same period in 2021; gross profit margin was 28.4%, an increase of 2% over the same period in 2021; net profit margin was 0.1%, an increase of 1.6% over the same period in 2021; adjusted EBITDA was US$70.4 million, an increase of US$64.4 million over the same period in 2021; adjusted EBITDA margin was 2.8%, an increase of 2.5% over the same period in 2021.

Chewy CEO Sumit Singh said that in the third quarter, 30% of its orders were shipped from automated warehouse centers, an increase from 10% in the same period last year. The automated delivery network enables Chewy to handle more freight volume and significantly reduce the logistics cost of each order.

It is understood that Chewy has also improved its inventory positioning so that goods can be shipped from a lower distance to buyers, thereby reducing transportation distance, time and cost. In addition, Chewy has built two new import route facilities, which will support it to handle 90% of its import volume by the end of 2022.

Sumit Singh further stated that the revenue growth this quarter showed that despite the adverse factors such as inflation, consumers' demand for pet products has not weakened. Although the market economy is constantly changing, pet owners still attach great importance to the long-term companionship of their pets. It is this emotional bond that supports the pet category through various stages of the economic cycle.

Editor ✎ Nicole/

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