Is Chewy (CHWY) Making Money? — Market Mad House

Online pet food retailer Chewy (CHWY) is one of the fastest-growing companies around.

In fact, Stockrow gave Chewy Inc. (NYSE: CHWY) a revenue growth rate of 47.36% for the quarter ending on 31 July 2020. Chewy’s revenue growth rate grew from 46.22% for the quarter ending on 30 April 2020 and 24.38% for the quarter ending on 31 January 2020.

“We ended the quarter with 15 million active customers, an increase of 3.7 million compared to the end of first quarter 2019 and the fastest acceleration of new customer acquisition in the company’s history,” Chewy CEO Sumit Singh said of last quarter’s financials. “Net sales per active customer grew 6.6% to $357 when adjusting to exclude the extra week in 2018.”

Is Coronavirus driving Chewy’s Growth?

Pet Food Processing claims the Coronavirus pandemic added 1.6 million customers to Chewy’s platform in First Quarter 2020. Additionally, Singh claims new orders made up 11% of Chewy’s business in the last quarter.

“Also, after the COVID-19 outbreak, our existing customers started creating bigger baskets,” Singh claims. “These baskets had a higher mix of consumables in them. We believe these larger baskets with a higher mix of consumables were evidence of pandemic-related pantry stocking, and we estimate this benefited first quarter net sales by approximately $70 million.”