Chewy Stock Is Up on Booming Online Pet Food Sales.
Chewy reported about the fourth quarter of 2019, the results were largely in line with expectations, with sales for the quarter up 34.7% over the prior year, at $1.35 billion and a net loss of $60.9 million, which included share-based compensation of $45.9 million.
Chewy expects first quarter sales growth of $1.5 billion to $1.52 billion, up 35% to 37% over the first quarter of 2019. It did not, however, issue guidance for the full year, saying there are too many uncertainties at this time.
While Chewy currently appears to be benefiting from the crisis and stay-at-home orders around the country, “the situation is evolving daily,” and therefore it would not be prudent to make predictions for the full year, Singh said.
“In light of the unprecedented nature of the current pandemic, the steps being taken to mitigate the outbreak and the sheer number of other variables outside of our control,” the company feels it is wisest not to make full year forecasts just yet, Singh said.
Chewy is hiring between 6,000 and 10,000 employees at its fulfillment centers to handle a spike in orders, both from existing customers who are stockpiling pet food and supplies, and new customers, CEO Sumit Singh told investors in a conference call following the results release today after the market closed.
Source: Forbes