Chewy Inc. shares declined in extended trading Tuesday, after executives reported a surprise holiday profit but a shrinking active-customer count and guidance calling for flat to lesser profit in the year ahead.
Chewy CHWY reported a fourth-quarter profit of $6.1 million, or a penny a share, after losing 15 cents a share in the holiday quarter a year ago. Revenue grew to $2.71 billion from $2.39 billion a year ago, easily beating expectations. However, active customers — an important metric for the online pet-supplies business — declined to 20.41 million from 20.66 million a year ago, a sharper drop than expected.
Analysts on average were expecting a loss of 11 cents a share on sales of $2.64 billion and active customers of 20.52 million, according to FactSet. Chewy’s stock dropped more than 2% in after-hours trading, following a 5.4% decline in the regular session to $37.76. “On the guidance front, we believe Street FY23 estimates are realistic, but management forecasts likely incorporate conservatism, especially in the hardgoods category, amid macro uncertainty similar to guides we have seen thus far in our retail coverage,” Oppenheimer analysts wrote ahead of the report, while maintaining an “outperform” rating and $50 price target.
street has lost their ever loving minds BUY BUY BUY OVERSOLD THIS STOCK WILLL BE 50+ BY YEARS END BANK IT