Chewy shares tumble as higher costs reduce profitability
Chewy shares fall late Thursday after the online food retailer posted disappointing results for its fiscal third quarter ended Oct. 31, reflecting higher supply chain and labor costs provided that.
For the quarter, Chewy (ticher: CHWY) reported revenue of $ 2.21 billion, up 24% from a year earlier, and in line with Street’s forecasts and estimates. But the company posted a loss for the quarter of 8 cents per share, larger than Street’s consensus forecast of a loss of 4 cents per share. Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was $ 6 million, up 9.9% from a year ago. Adjusted EBITDA margin remained stable at 0.3%. Active customers increased 14.7% from a year ago, while net sales per active customer increased 15.4%.
The company said profitability measures in the quarter reflected “the impact of continued supply chain disruptions, labor shortages and higher inflation.”
Chewy sees fiscal fourth quarter revenue of $ 2.4 billion to $ 2.44 billion; halfway through, it’s a hair below Street’s old consensus of $ 2.43 billion.
The company now has fiscal year 2022 revenue of $ 8.9 billion to $ 8.94 billion for the full year 2022, reducing the range from previous forecast of $ 8.9 billion. from $ 9 billion to $ 9 billion. Chewy also said its Adjusted EBITDA margin is now stable for fiscal 2020. Previous forecast called for an increase in margins of 0.8 to 1.2 percentage points from the previous year.
Chewy’s late trading was down 8.2%, to $ 51.71.
Write to Eric J. Savitz at [email protected]