Chewy’s net income drops by 52% in the first quarter of 2022
The online pet retailer has nonetheless welcomed a strong start of the year, showing the resilience of the industry despite rising inflation.
Chewy’s net sales reached $2.43 billion (€2.28B) in the first quarter of the fiscal year 2022 ending May 1, a year-on-ear increase of 13.7%. In the Q1 period last year, net sales were $2.14 billion (€2B).
CEO Sumit Singh commented that the year “is off to a good start” and the company is driving a “solid” 14% growth and has delivered improvements in both gross margin and profitability.
“Our first-quarter results are a testament to the resiliency of the pet category and clearly demonstrate our ability to execute against our strategic priorities,” he believes.
The company saw “strong” spending behavior from both new and existing customers and net sales per active customer rose 15% to $446 ($417).
However, despite this, the net income of the chain was $18.5 million (€17.4M) in the first quarter of 2022 against $38.7 million (€36.3M) in the same period for 2021.
Chewy warned earlier in the year that higher fuel prices would have a negative impact on the margin. “Inflationary pressures and supply chain disruptions are expected to persist and the consumer’s post-pandemic behavior continues to evolve”, concluded the retailer.
In spite of these challenges, the company maintained its full-year 2022 guidance, with a forecast of 15-17% net sales growth.
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