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Chewy Drops 15% After Quarterly Earnings Impacted by Supply Chain Challenges

Stock Markets Mar 30, 2022 15:08
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By Sam Boughedda

Investing.com -- Chewy Inc (NYSE:CHWY) shares opened 15% lower Wednesday after tumbling in extended and premarket trading following the company's earnings and revenue miss. 

The online retailer of pet food and other pet products reported a loss per share of $0.15 on revenue of $2.39 billion for the fourth quarter. Analysts polled by Investing.com expected a loss per share of $0.06 on revenue of $2.42 billion. However, sales did rise to $2.04 billion.

In its shareholder letter, the company said the results showed “the conflict between the fundamentally strong demand that underpins our business and the highly challenging operating environment.”

While Chewy said there were positive trends in site traffic and order volumes, it saw operating conditions in some regions “deteriorate” due to the omicron variant, which “disrupted already-weakened supply chains across our industry.”

However, the company believes the "near-term pressures on gross margin likely peaked in the fourth quarter," and they are "already seeing signs of recovery in the current quarter."

Chewy sees net sales in the first quarter between $2.4 billion and $2.43 billion, with net sales for full-year fiscal 2022 between $10.2 billion and $10.4 billion.

 

Chewy Drops 15% After Quarterly Earnings Impacted by Supply Chain Challenges
 

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