Chewy Q3 Earnings: Autoship Sales Rise, Stock Declines
Chewy recently released its third-quarter earnings report, and the results were a bit of a mixed bag. While there was some good news, investors seemed to have a lukewarm response overall.
On the positive side, Chewy’s autoship program, similar to Amazon’s subscribe and save, saw a solid 8.7% increase in sales year-over-year. Additionally, the amount spent by active customers went up by 4.2%, showing that Chewy’s loyal customers are continuing to support the company.
CEO Sumit Singh highlighted the importance of the autoship program, stating that it provides predictability and drives customer loyalty. He also noted an uptick in autoship adoption rates among early customers.
However, despite raising sales guidance and reporting a 5% increase in revenue to $2.88 billion, Chewy’s stock price took a hit. By midday on December 4, shares had fallen by 7.22%, resting at $31.11.
Looking ahead, Chewy does face some challenges. While the introduction of Chewy Vet Care clinics has shown progress, scaling this service may be tough. Competition in the pet care industry is fierce, and economic factors like inflation could impact consumer spending. Additionally, supply chain disruptions remain a concern.
Overall, Chewy’s executives remain focused on driving growth into the new year, despite the hurdles they may face. The company is committed to its core customers and is working to navigate the ever-changing landscape of the pet supply industry.
