Shares of Chewy dropped nearly 10% after the company’s Q2 results came in below market expectations, according to a report by Chewy on Wednesday.
- Chewy posted Q2 revenue of $2.16 billion compared to a consensus estimate of $2.17 billion. Earnings per share at a negative $0.04 to miss the expected loss of $0.04 per share.
- The online pet supply giant posted a loss of $0.04 per share compared to a loss of $0.02 per share estimated by analysts.
- The revenue growth was backed by 21.1% YoY growth in active customers and 13.5% YoY growth in net sales per active customer.
- Gross margin grew by 200 basis points YoY to 27.5 percent, while adjusted EBITDA was $23.3 million, and adjusted EBITDA margin rose by 20 basis points to 1.1%.
The company identified Chewy Health as having a growing base of customers and veterinarian partners, with the launched marketplace, a free service for veterinarians directly on Chewy.com to aid in growth of clinic revenues.
CHWY down -10.04%, Pre-market trading.