Chewy's second quarter revenue was $2.43 billion! Net profit increased by 233.9%!

It is learned that on August 30, the US pet e-commerce platform Chewy released its financial results for the second quarter of 2022. As consumers cut spending on pet supplies, the company's revenue this quarter was US$2.43 billion, lower than Wall Street's expectations of US$2.45 billion.

The following is a summary of Chewy's second quarter financial report:

• Net sales were $2.43 billion, up 12.8% year-over-year.
• Gross profit margin was 28.1%, up 60% year-on-year;
• Net income was $22.3 million, up 233.9% year-over-year;
• Adjusted EBITDA was $83.1 million, an increase of $59.8 million year-over-year;
• Adjusted EBITDA margin was 3.4%, an increase of 230% year-over-year.

In addition, in the second quarter, Chewy's active users were 20.49 million, up 2.1% year-on-year. Affected by rising prices, the average spending per active user was $462, up 14.4% year-on-year.

Chewy CEO Sumit Singh said the effect of the surge in pet adoptions during the pandemic is slowing down, which is within the company's expectations. In the long run, Chewy will use its business model to attract and retain a group of sticky consumers.

It is worth noting that although the revenue was lower than expected, the company's net profit exceeded expectations. Compared with a loss of 16 million in the same period last year, Chewy's net profit in the second quarter increased by 233.9% to 22.3 million US dollars. Adjusted earnings per share were $5, exceeding Wall Street's expected loss per share of $12.

Sumit Singh said that he is proud of the second quarter 2022 results and the double-digit revenue growth and profit margin expansion in a rapidly evolving macro environment. He believes that the excellent customer value proposition, strength in elastic demand categories such as food and healthcare, and the expansion of the Autoship business will enable Chewy to continue to gain market share and expand its leadership in the pet category.

However, with many uncertainties about the future economy, Chewy cut its third-quarter and full-year sales forecasts. The company forecast third-quarter revenue of between $2.44 billion and $2.46 billion, below analysts' expectations of $2.57 billion, and full-year revenue of between $9.9 billion and $10 billion, below expectations of $10.25 billion.

Editor ✎ Nicole/

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