Investing.com – Chewy stock (NYSE:CHWY) stock plunged 10% in Thursday’s premarket trading as second-quarter revenue and earnings came in below estimates and its reiteration of guidance disappointed.
Net sales grew 27% to $2.16 billion, fractionally below the $2.17 billion analysts estimated. The company had produced a strong series of numbers as broader pet ownership became one of the less-expected side-effects of pandemic-induced lockdowns. That trend is now easing as economies reopen, people step out and pet adoption reverts to normal levels.
The company said gross customer additions are running higher than pre-pandemic levels, but below the record it saw last year at the peak of the pandemic.
The company closed the second quarter with 20.1 million customers, a rise of 21% on-year. Second-quarter net sales per active customer rose 14% to $404. Chewy CEO Sumit Singh has in the past said customers tend to spend more, the longer they stay on.
Adjusted net loss halved to 4 cents per share but was wider than the 1 cent that analysts estimated. Expenses, which jumped 31%, ate into margins.
The company has guided for annual revenue around $8.95 billion, up 25% from last year.