From profit to loss: Chewy’s Q3 in a nutshell

American online pet retailer Chewy posted net sales of $2.74 billion (€2.5B) in the 3 months to 29 October 2023. During the same period in 2022, the firm hit $2.53 billion (€2.3B) in sales.

On the other hand, the company achieved a net loss of $35.8 million from a profit of $2.3 million (€2.1M) in the previous year.

Chewy also revealed its 9-month earnings, reaching net sales of $8.3 billion (€7.7B), up from $7.39 billion (€6.86B) during the same period in 2022.

Net income was much higher over the 9 months this year at $5.3 million (€4.9M) compared to the $43 million (€39.9M) last year.

Canada and Black Friday

After announcing its international expansion to Canada in June, the Florida-based online pet retailer confirmed that initial customer demand “has been strong” and that the sign-ups for recurrent orders (Autoship) are “healthy.”

Chewy started operations in Toronto, the largest metropolitan area in Canada, and plans “to take a gradual and responsible approach to expanding [their] footprint.”

The company also stressed that shopping events like Black Friday are a considerable opportunity for businesses like Chewy. According to the online pet retailer, this year’s event was a success, as traffic and sales exceeded expectations across all categories.

Yearly guidance

Chewy has reviewed its full-year guidance to fall between $11.08 billion and $11.1 billion (€10.29B–€10.3B). Previously, the retailer had forecasted $11.15 billion to $11.35 billion (€10.35B–€10.54B).

“While we are confident in our ability to continue gaining market share and deliver attractive levels of profitability, our guidance reflects the continued macro pressures observed industrywide,” reads a letter to shareholders.

Analysts from Market Watch noted that shares in the company dipped by 8% after the earnings announcement and said that this year, there has been a huge decline of 48% in shares.

Leadership changes

David Reeder, currently the CFO at semiconductor multinational GlobalFoundries, will take on the role of Chewy’s new Chief Financial Officer (CFO) in early 2024. Current interim CFO Stacy Bowman will serve as Chief Accounting Officer.

CEO Sumit Singh said that Reeder is a “highly experienced” finance executive who has driven strong results across a range of complex industries.

Although he does not come from a pet background, Reeder has experience leading financial strategy and is well versed in the insurance industry, as he was CEO of Florida-based Tower Hill Insurance Group.