WSH in the News

Nasdaq: Chewy Is Showing It Can Run With the Big Dogs

See the full article on


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).