Pet Supply-Focused Chewy Shares Gain On Better-Than-Anticipated Q1 Earnings, $500M Buyback Plan

Chewy Inc (NYSE: CHWY) shares gained on Wednesday after the e-commerce retailer for pet supplies reported better-than-expected first-quarter 2024 results.

The pet care company reported adjusted EPS of $0.31 compared to the consensus of $0.07 and $0.20 a year ago.

The company reported sales of $2.88 billion, up 3.1% Y/Y, marginally above the consensus of $2.85 billion.

"Fiscal year 2024 is off to a solid start. We delivered strong net sales as well as record-breaking Adjusted EBITDA in the first quarter," said Sumit Singh, Chief Executive Officer of Chewy. "Chewy's value proposition continues to resonate with our customers, and I am proud of the teams at Chewy who are executing flawlessly on our strategic roadmap and the controllable elements of our business."

Autoship customer sales reached $2.23 billion, up 6.4%. Autoship customers are customers in a given fiscal quarter for whom an order has shipped through Autoship subscription program during the preceding 364-day period.

Net Sales Per Active Customer increased 20% to $562.

Chewy also announced that its Board of Directors authorized a share repurchase program of up to $500 million of its Class A and/or Class B common stock.

Guidance: Chewy forecasts second-quarter sales of $2.84 billion - $2.86 billion, approximately 2%-3% YoY growth compared to the consensus of $2.86 billion.

For fiscal year 2024, the company continues to forecast sales of $11.6 billion - $11.8 billion, up 4%-6% YoY versus the consensus of $11.70 billion, with adjusted EBITDA margin of 4.1%-4.3%.

Price Action: CHWY shares are up 20.8% at $20.43 at last check Wednesday.