Chewy Sinks on Releasing Q1 Results

Chewy, Inc. (NYSE: CHWY) opened Wednesday sharply downward, after the pet food giant released its first-quarter financial results. Net sales proved to be $3.12 billion, an increase of 8.3% year over year. Gross margin of 29.6 percent decreased 10 basis points year over yearNet income of $62.4 million, including share-based compensation expense and related taxes of $78.0 million. Basic earnings per share of $0.15, consistent year over yearDiluted earnings per share of $0.15, consistent year over year. Adjusted EBITDA of $192.7 million, an increase of $29.8 million year over year. “Fiscal year 2025 is off to a strong start as the momentum at Chewy continues,” said CEO Sumit Singh.“We delivered topline growth exceeding the high-end of our net sales guidance range, year-over-year growth in active customers, and compelling profitability and free cash flow generation. “These results are a testament to the resiliency of the pet category and underscore the strength of Chewy’s value proposition and our ability to continue to gain market share.”“We believe,” to quote this morning’s news release, “that we are the preeminent online source for pet products, supplies, and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing.”CHWY sank $4.87, or 10.6%, to $40.92.