Online pet retailer’s growing customer base is boosted by chewy results

Key Takeaways

• Chewy's quarterly earnings and revenue exceeded forecasts as the online pet supplies retailer grew its customer base.
• The company noted that sales for customers who receive Chewy products automatically increased by 21%.
• Chewy shares are up more than twofold in the last year.

Chewy (CHWY) shares advanced after the online pet supplies provider posted better-than-anticipated results as its customer base expanded.

The retailer reported adjusted earnings per share of $0.28 in the fourth quarter, with revenue rising 15% year-overyear to $3.25billion. Both exceeded Visible Alpha’s forecasts. 

CEO Sumit Singh said sales growth and profitability came in above the high end of the company's expectations in both the quarter and full year. Singh explained that the performance "was underpinned by strong active customer growth, and compelling Autoship customer loyalty."

Chewy's active customers rose 2% to 20.5 million, and net sales per active customer was 4% higher to $578. Sales to those who automatically received their products jumped 21% up to $2.62 Billion, and accounted for over 80% of the total sales. This is compared to 76% last year.

Chewy’s shares, which jumped 2% after the opening bell of Wednesday, are up more than 120% since the beginning of the year.