Chewy grows by 24.1% in Q3
The online pet retailer continues to grow, although not as fast as investors want.
Chewy’s active customers grew almost 15%, but investors are getting concerned. Year-over-year revenue and active customer growth seems to be decelerating.
With fewer households adding new pets to their family, some pet companies are seeing growth slightly declining. As a result, Petco and Bark have also seen their share prices drop this year.
While Chewy’s topline grew, it still reported a loss:
“Demand and consumer engagement remained strong through the third quarter, with net sales up 24 percent year over year, or 86 percent on a two-year stack basis,” said Sumit Singh, Chief Executive Officer of Chewy. “Our sustained growth this year shows the soundness of our growth strategy, the uniqueness of Chewy’s value proposition, and the durability of the pet category. At the same time, our third-quarter profitability reflects the impact of ongoing supply chain disruptions, labor shortages, and higher inflation. As we work through these macro uncertainties, we remain squarely focused on the long term and on building an enduring franchise to serve millions of loyal pets, pet parents, and partners.”
Active customers are spending more than a year ago: On average, an active customer bought $419 worth of products last quarter, a year-over-year increase of 15%.