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Chewy sales continue to rise as pet adoptions slow

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Yahoo Finance Live anchors break down the chart of the day and data around pet adoptions in the first quarter.

Video Transcript

BRIAN CHEUNG: Let's shift now to our chart of the day, which of course, we're going to talk about another big company on the move, and that is Chewy. Shares of that pet product retailer jumping after the company reported earnings yesterday. What I'm showing you right now is the net sales for this company, 14% jump over the same quarter in 2021. Expenses apparently not bearing down on the company, as Chewy reported positive net income, despite analysts' expectations for a net loss.

And Akiko, very interesting color on the call because they want to look at the churn of adoptions versus what they call a, sadly, relinquishment of pets in this post-pandemic period. A lot of people adopted pets during the pandemic. And apparently, they cited data-- I don't know where this comes from. But they cited data, 480,000 pets were adopted in the first quarter, but 478,000 were relinquished.

AKIKO FUJITA: Oh!

BRIAN CHEUNG: So it's essentially a one-to-one.

AKIKO FUJITA: That is heartbreaking.

BRIAN CHEUNG: It's so sad. But look, I mean, these companies, it's all about the numbers, right?

AKIKO FUJITA: Well--

BRIAN CHEUNG: But apparently, that's what the churn looks like among pet adoption.

AKIKO FUJITA: Wow. That is a huge turnover. I had wondered about that, right? Because so many people-- aw!

BRIAN CHEUNG: Aw, look at this guy over here. Look at these doggos.

AKIKO FUJITA: How can you relinquish?

BRIAN CHEUNG: Why don't we just do an hour of this? Right?

AKIKO FUJITA: I mean, this is kind of what we need.

BRIAN CHEUNG: This is killing me right now. I can't even remember what we were talking about.

AKIKO FUJITA: We were talking about Chewy, and you're right. It is about the numbers for the company. But I mean, that's a really fascinating stat because we saw so many people, when they were stuck at home, adopting pets. And now those that have returned to work--

BRIAN CHEUNG: They gotta go back to the office.

AKIKO FUJITA: They have to go back to the office. They can't just leave their pets. And so, what, they just take them back to the shelter? I mean, that--

BRIAN CHEUNG: Well, even for people that need to hold on to their pets, you have to wean them off of the constant attention from being at home. And I wonder if maybe that's actually a good thing for Chewy because you can buy toys and other types of things that the pets will be occupied for because you're no longer home. Fido has got to play with something--

AKIKO FUJITA: Yeah, but we know those who still have their pets--

BRIAN CHEUNG: [INAUDIBLE] pets all day, yeah.

AKIKO FUJITA: --shell out a lot of money

BRIAN CHEUNG: Yeah, by the way, no pet owners over here, actually.

AKIKO FUJITA: No pet owners.

BRIAN CHEUNG: Yeah, so.

AKIKO FUJITA: Because we're responsible.

BRIAN CHEUNG: Yeah, we want to adopt and then relinquish, but we'll leave that there. I want more dog content on this show.