Chewy (CHWY) Tops Q1 EPS by 4c, Revenues Beat; Offers 2Q & FY20 Revenue Guidance Above Consensus

Chewy (NYSE: CHWY) reported Q1 EPS of ($0.12), $0.04 better than the analyst estimate of ($0.16). Revenue for the quarter came in at $1.62 billion versus the consensus estimate of $1.53 billion.

Link to 1Q Earnings Letter

Fiscal Q1 2020 Highlights:

• Net sales of $1.62 billion grew 46 percent year-over-year
• Gross margin of 23.4 percent expanded 50 basis points year-over-year
• Net loss of $47.9 million, including share-based compensation expense of $42.3 million
• Net margin of (3.0) percent declined 30 basis points year-over-year attributable to share-based compensation expense in the period
• Adjusted EBITDA(1) of $3.4 million improved 122 percent year-over-year
• Adjusted EBITDA margin(1) of 0.2 percent improved 160 basis points year-over-year

“We had a strong start to 2020 with first quarter net sales increasing 46 percent year-over-year and gross margins expanding 50 basis points. We also achieved a significant milestone by delivering our first ever quarter of positive adjusted EBITDA,” said Sumit Singh, Chief Executive Officer of Chewy. “We are proud to be the e-tailer of choice for millions of new and existing pet parents during this unprecedented time. Chewy is well-positioned to thrive in this expanded marketplace, and we remain focused, as always, on our mission of becoming the most trusted and convenient online destination for pet parents (and partners) everywhere.”

GUIDANCE:

Chewy sees Q2 2020 revenue of $1.62-1.64 billion, versus the consensus of $1.55 billion.

Chewy sees FY2020 revenue of $6.55-6.65 billion, versus the consensus of $6.41 billion.

For earnings history and earnings-related data on Chewy (CHWY) click here.

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