Chewy Builds on Post-IPO Jump With Optimistic Sales Forecasts

Olivia Rockeman, Bloomberg News

A monitor displays Chewy Inc. signage during the company's initial public offering (IPO) on the floor of the New York Stock Exchange. , Photographer: Michael Nagle/Bloomberg

(Bloomberg) -- Chewy Inc., in its first-ever results since the online pet supply retailer’s initial public offering in June, forecast sales for the current quarter and the year that topped analysts’ estimates. The shares climbed in late trading.

PetSmart Inc.-controlled Chewy said net sales in the second quarter will be $1.12 billion to $1.14 billion, while full-year sales will be $4.675 billion to $4.75 billion. Both outlooks exceeded analysts’ projections.

Key Insights

Since Chewy gave preliminary first-quarter results before the IPO, investors were hoping to get some guidance from the company looking forward. The company set a high bar with its $1.02 billion IPO last month as well as in its trading debut, where the shares closed 59% above their $22 offer price.
Investors have been betting that pet owners will increasingly shop online, though looming large is e-commerce giant Amazon.com Inc. Chewy reiterated it had 11.3 million active members last quarter, but didn’t give any forecast for the current period.

Market Reaction

Shares of Dania Beach, Florida-based Chewy rose as much as 4.9% in after-hours trading. While they’ve come off their highs since the company went public, the shares are still up 49%, far outpacing the gain in the S&P 500 Index.

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