Chewy: more sales, fewer active customers

Chewy: more sales, fewer active customers

The online pet retailer posted double-digit sales growth in 2022, while its customer base went down by 340,000 pet parents.

The e-commerce pet retailer posted net sales of $10.1 billion (€9.28B) in 12 months, up 13.6%. 

The non-discretionary categories, consumables and healthcare, increased by 18.5% in a year, while discretionary categories, such as hard goods, did not perform well.

“Our topline expansion reflects our ability to manage the dynamic pricing environment as well as the recurring nature of our business model and our ability to expand share of wallet from our customers over time,” the company said.

Net income was $49 million (€45M), compared to a net loss of $74 million (€67.9M) in 2021.

The Florida-based retailer saw its active customer base decline to 20.4 million from 20.7 million in 2021.

Fourth quarter

Chewy saw its net sales grow by 13.4% to $2.71 billion (€2.5B) in Q4. CEO Sumit Singh said the results of the last quarter “cap an incredible year.”

According to the figures, Autoship customer sales in Q4 soared 17.5% to $1.98 billion (€1.82B), representing 73.3% of its total sales. 

Customer engagement also improved, with net sales per active customer (NSPAC) increasing 15.1% year-on-year to $495 (€454) in Q4. 

The company forecasts sales of $2.72 billion to $2.74 billion (€2.5B) for 2023, a 12 to 13% increase. It said it is on track to open its fourth automated facility in Nashville, Tennessee, in the first half of 2023. It also plans to launch its operations outside the US, introducing its first international market later in the year.