Chewy (NYSE: CHWY) reported its third quarter financial results after the closing bell on Monday. The Company reported weaker-than-expected earnings, however, shares were up 2.3% on Tuesday morning.
For the quarter, Chewy reported earnings loss of USD 0.20 per share on revenue of USD 1.23 Billion. Analysts projected earnings loss of USD 0.16 per share on revenue of USD 1.20 Billion.
Net sales during the quarter improved by 40% year-over-year, while net loss totaled USD 79 Million, including a non-cash share-based compensation charge of USD 39.3 Million.
Gross margin was 23.7%, expanding by 410 basis points year-over-year.
Adjusted EBITDA loss was USD 30.2 Million, improved by 56% year-over-year, while adjusted EBITDA margin was 2.5%, improved by 530 basis points year-over-year.
“We are pleased to report strong third quarter 2019 results with net sales growing 40 percent year-over-year and gross margin increasing 410 basis points over the same period as the team continues to execute against our strategy of long-term, sustainable growth and margin expansion,” said Sumit Singh, Chief Executive Officer of Chewy. “We remain focused on delivering product innovation and technology that makes finding and buying the right product easy, convenient, and enjoyable. We believe we are transforming the industry with our truly unique and personalized, high-bar shopping experience that builds trust and brand loyalty by keeping the customer at the center of everything we do.”
Chewy shares are now down 29.32% this year since launching its initial public offering back in June.