Chewy’s net sales increase by 24%; warns about impact of high fuel prices on freight costs
The American pet retailer reached $8.89 billion (€8B) in sales in 2021, reflecting “the durability” of the business and the pet category beyond the pandemic.
The rise in the fiscal year 2021 has been slower than the one registered in 2020, when the company posted a sales growth of 47% year over year.
In the Q4 period ended January 30 2022, Chewy achieved net sales of $2.39 billion (€2.15B), 17% more than in the same period of 2021. In Q3 2021, sales went up 24%.
For Chief Executive Officer Sumit Singh, these numbers are a “strong testament” to the company’s ability to execute “in the face of rapidly evolving macro conditions.”
The company said to investors that in the last two years they expanded their active customer base by 7.2 million customers, 54% more.
“As we look to 2022 and beyond, our innovation pipeline remains robust, our strategy remains intact, and we remain optimistic about the growth opportunity ahead of us,” Singh added.
Despite the good forecast, the retailer warned that the increase in the higher fuel prices will have an impact on the gross margin. The company said that it is already preparing for this situation, including contemplating “several logistics and supply chain initiatives to lower freight costs.”
“We expect these initiatives will help mitigate part of the impact from the new contract this year and help mitigate most of the impact within two years.”
A new shipping contract with FedEx went into effect in January 2022.
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