Chewy (NYSE: CHWY) stock jumped during intraday trading Wednesday following the release of its first-quarter financial results, which beat expectations. The e-commerce giant in pet food and supplies also revealed a fresh stock buyback plan amid a notable increase in automatic delivery sales.
Chewy posted first-quarter revenue of $2.88 billion, marking a 3.1% increase year-over-year and beating analysts’ estimates compiled by Visible Alpha. Net income nearly tripled from $22.86 million in the year-ago period to $66.9 million, exceeding expectations.
In addition, Chewy reported that its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) tripled year-over-year, reaching a record $162.9 million. Diluted earnings per share came in at 15 cents, up from 5 cents a year ago.
Despite a slight decline in active customers by 2.1% to 20 million, Chewy reported a notable increase in net sales per active customer, which surged by 9.6% to $562. Moreover, the company’s autoship customer sales grew by 6.4% to $2.23 billion, constituting 77.6% of total sales, compared to 75.2% in the previous year.
CEO Sumit Singh expressed satisfaction with the company’s performance, stating,
“We are executing flawlessly on our strategic roadmap and the controllable elements of our business.”
Furthermore, Chewy’s board of directors has approved a share repurchase program of up to $500 million with no expiration date.
Chewy (NYSE: CHWY) Stock Price Action
On Wednesday, CHWY stock soared 27.14%, closing at $21.50, marking a 28.74% increase for the week. The trading volume was 66,623,072 shares, significantly higher than the average daily volume of 9.77 million.
