Chewy tops Q1 revenue estimates, offers elevated guidance for Q2

Chewy released its first-quarter earnings results after market close on Tuesday, beating on its top line. The company offered guidance with stronger-than-expected estimates for its second quarter. Yahoo Finance’s Myles Udland breaks down the pet e-commerce company’s earnings on The Final Round.

Video Transcript

SEANA SMITH: Well, we have some breaking news after hours. Earnings keep rolling in. Myles has the numbers for us. And Myles, it looks like you're taking a look at Chewy first. That stock under pressure here after hours.

MYLES UDLAND: Yeah, Seana, Chewy shares right now down about 6%. Let's get to the numbers from the company's first fiscal quarter. Net sales $1.62 billion. The street was looking for revenues to come in about 1.53, so again, better than expected. For the second quarter, the company also providing guidance that is slightly above the street's range, $1.62 to $1.64 billion in Q2. The street was looking for 1.55.

Now, there was a slight decline in the company's average sale per customer. So $350-- $357, excuse me, in net sales per customer during the first quarter. That was actually down slightly on a quarter over quarter basis. And I think also, when the company here just forecasting, again, better than expected revenues in the second quarter, but growth that's basically flat. I mean, 1.62 to 1.64 billion in the second quarter, well, they just reported a quarter of 1.62.

And so again, I think the street certainly not looking at that super favorably in this environment. Now, the stock has had a pretty solid run here off its lows after the initial pandemic selloff. The stock got down to about $25 a share. Closed today at 51, so taking a breather after hours. Business, obviously, has improved quite a bit, but sequential improvement seems to be slightly lacking here on the company's latest quarterly report.