By Kelly Cloonan
Chewy's third-quarter profit and revenue rose, helped by veterinarian-care services and its paid membership program.
The online pet-supplies retailer, however, issued a cautious forecast for the holiday quarter, sending the stock down in premarket trading. Shares were recently up 3.3% at $35.99.
Chief Executive Sumit Singh attributed the company's recent momentum to efforts to strengthen its flywheel model, reinvesting its top-line gains in areas like vet offerings and a paid membership program in the hopes of boosting customer retention.
Such efforts have exceeded expectations so far, Singh said, helping both active customers and sales per active customer grow 4.9% in the quarter.
Chewy's vet-care offering saw strong demand in the quarter, helping strengthen customer loyalty as customers who visited its 14 clinics increasingly signed onto its autoship program, he said.
The company's paid membership program also continues to outperform expectations, boosting order frequency and participation in autoship. The company has seen those trends continue after raising the program's annual fee to $79 in October, he said.
In its latest quarter, the online pet-supplies retailer posted a profit of $59.2 million, or 14 cents a share for its fiscal third quarter ended Nov. 2, compared with $3.9 million, or 1 cent a share, a year earlier.
Adjusted earnings per share were 32 cents, ahead of estimates of 30 cents a share, according to analysts polled by FactSet.
Revenue rose 8.3% to $3.12 billion, compared with analyst estimates of $3.1 billion.
The company added about 250,000 net active customers on a sequential basis, bringing its total customer base to 21.2 million. Net sales per active customer rose to $595, missing analyst estimates of $597.58.
Chief Executive Sumit Singh said the Plantation, Fla., company continues to outperform the broader pet category and expand its market share.
For the current quarter, Chewy guided for adjusted earnings per share of 24 cents to 27 cents on net sales of $3.24 billion to $3.26 billion. Analysts are looking for adjusted earnings of 29 cents a share on sales of $3.26 billion.
For the year, Chewy narrowed its sales forecast to between $12.58 billion and $12.6 billion from a prior range of $12.5 billion to $12.6 billion.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
December 10, 2025 10:26 ET (15:26 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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