Chewy, the online pet retailer, is set to release its fiscal second-quarter results after the market closes on Wednesday. Here’s a preview of what to anticipate:
Loss Forecast
According to FactSet, Chewy is projected to experience a loss of $22.5 million, a significant decrease from the $22.3 million net income reported in the same quarter last year.
Sales Outlook
FactSet also predicts that Chewy will record $2.76 billion in sales for the quarter, showing an increase compared to the $2.43 billion generated in the year-ago period.
Adjusted Earnings
Chewy’s adjusted earnings for this quarter are estimated to be 10 cents per share, down from 15 cents per share in the previous year’s quarter.
Key Points to Watch
Expansion into Canada
Keep an eye out for any updates from Chewy regarding its planned expansion into Canada, scheduled to take place in the third quarter. In May, the company mentioned that it sees potential in Canada’s booming market and aims to replicate its success by capturing market share and achieving profitability.
Customer Growth
Investors will be particularly interested in seeing if Chewy can report an increase in its number of active customers. After experiencing a decline in the previous two quarters, Chewy aims to regain momentum in customer growth. Its entry into the Canadian market is expected to attract new customers and support this growth strategy.
Leadership Transition
Listen closely for any details regarding Chewy’s search for a successor to its former Chief Financial Officer, Mario Marte. Marte retired on July 28 and was temporarily replaced by Stacy Bowman, Chief Accounting Officer.
