Nasdaq: Chewy Is Showing It Can Run With the Big Dogs
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Showing just how resilient the pet care market is, no matter what the economic conditions are, online pet food and products retailer Chewy (NYSE: CHWY) reported first-quarter results that showed a surprise profit along with a revenue forecast that exceeded analyst expectations.
While other online pet care companies such as Bark continue to reel from a consumer spending pullback, Chewy's results highlight the difference between selling essentials and luxuries in times of turmoil, and why it's running ahead of the pack.
Like a dog with a bone
Spending on pets is in a per-pet-ual state of growth. For example, pandemic-era spending on Fido and Fluffy rose from $97.1 billion in 2019 to $123.6 billion last year, a near 13% annual increase. In fact, 2020 was the first year consumers spent over $100 billion on their pets, according to the American Pet Products Association (APPA).
Chewy's net sales soared 13.7% in the first quarter to $2.43 billion and generated earnings of $18.5 billion, or $0.04 per share. Though that was down from the e-commerce retailer's $0.09 per-share profit last year, it handily topped Wall Street's forecast for an $0.11 per-share loss on sales of $2.41 billion (Corporate Event Data provided by Wall Street Horizon).