Chewy Inc. stock jumped as much as 16% in late trading after the pet-products retailer beat sales expectations, with a boost from a recurring-purchase program.
Net sales per active customer and sales through Autoship, which offers prescription refills, discounts and scheduled deliveries of pet supplies, “both reached new record highs for the company and continues to fuel customer loyalty and spend toward our platform,” Chewy Chief Executive Officer Sumit Singh said in a statement. Net sales per active customer exceeded $500, up nearly 15% from last year, driving results that beat expectations.
Chewy also raised its full-year sales guidance.
The stock reaction differs from that directed toward pet-retail rival Petco Health & Wellness Co., whose stock tumbled the most on record after results last week showed that spending on discretionary items like pet collars and leashes declined. Petco CEO Ron Coughlin said at the time that the “behavior is consistent with past times of economic uncertainty.”
Chewy said in a shareholder letter that it looks forward to “steady growth in profitability” through new initiatives, including the company’s first international expansion, into Canada.
The stock was up 12% in after-hours trading at 4:57 p.m. in New York. It was down 20% this year through Wednesday’s close, similar to the 19% fall of Petco and trailing the 8.9% gain of the S&P 500 Index.
