Investors are reacting positively to news that Chewy, Inc.’s net sales in the first quarter of 2023 totaled $2.78 billion and improvement of 14.7 percent year over year. Industry media is reporting today that the company’s shares surged more than 13 percent in trading yesterday, May 31, after the company released its financial results for the first quarter of fiscal year 2023 ended April 30, 2023.
Other highlights from the results report include:
- Gross margin of 28.4 percent expanded 90 basis points year over year
- Net income of $22.2 million, including share-based compensation expense and related taxes of $53.8 million
- Net margin of 0.8 percent remained flat year over year
- Basic and diluted earnings per share of $0.05, an increase of $0.01 year over year
“2023 is off to a strong start for Chewy. Our first quarter results reflect accelerating double-digit topline growth and continued expansion of adjusted EBITDA margin. Net sales per active customer and Autoship customer sales also both reached new record highs for the company and continued to fuel customer loyalty and spend towards our platform,” said Sumit Singh, Chief Executive Officer of Chewy. “The superior value proposition of the Chewy brand continues to resonate, and our team continues to demonstrate operating discipline and high-quality execution.”
In a letter posted to its shareholders at Chewy, the company reported on several other developments from the first quarter, including the expectation of expansion into Canada in the third quarter of this year, the launch of a fourth automated fulfillment center in Nashville, TN and the launch of Lemonade as part of its CarePlus suite of wellness and insurance offerings.