Chewy, the online pet retailer, is set to announce its fiscal third-quarter results on Wednesday after the market closes. Here are the key details:
Net Income
According to FactSet, analysts expect Chewy to swing to a loss of $31.1 million in comparison to a net income of $2.3 million in the same period last year.
Sales
FactSet predicts that Chewy will report sales of $2.75 billion for the three-month period ending on October 31, up from $2.53 billion in the previous year.
Adjusted Earnings
After excluding one-time items, analysts anticipate earnings of around 10 cents per share, as reported by FactSet.
The stock experienced a 42% decline in the quarter and is currently trading at $18.36.
What to Watch
Investors will be keeping a close eye on several metrics, including:
Active Customers
The growth of active customers has been stagnant in recent quarters, making this a primary concern for investors. The metrics of net sales per active customer and the percentage of autoship customer sales will also be closely monitored. These indicators serve as proxies for consumer behavior and their willingness to spend on Chewy in the face of economic constraints.
Rover Group Acquisition
Although there is no direct competition between Chewy and Rover Group, investors may inquire about Chewy management’s perspective on the recent acquisition of Rover Group by private-equity firm Blackstone.
Future Plans
Chewy has scheduled its first investor day on December 14, during which it will outline its long-term strategy and provide updates on its plans.
