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Revenue of $2.74 billion came in below the consensus estimate of $2.76B. A loss per share was 8 cents compared to the consensus estimate of -$0.06.
“Chewy continues to gain market share, with third quarter net sales increasing 8% against industry growth in the low single digits. Our team also continues to execute admirably, as reflected by another strong quarter of 28.5% gross margin and 3.0% adjusted EBITDA margin profitability,” said CEO Sumit Singh.
For Q4/23, the company expects net sales to be in the range of $2.78-$2.80B, missing the consensus estimate of $2.93B.
For the full year, the company sees net sales at $11.08-$11.10B, again worse than the consensus of $11.25B.
Furthermore, the company announced the appointment of David Reeder as CFO, effective February 14, 2024.
Analysts at Oppenheimer remain Perform-rated on the stock.
“CHWY shares remain on our radar, but we believe an improving pet backdrop is likely necessary for the bull case to play out,” the analysts said.
Analysts at BofA cut the price target by $1 to $15 per share amid “poor pet trends.” They remain Underperform-rated on the stock.
“Weakening industry trends are unsurprising, but perhaps more pronounced than anticipated,” they said.
