Chewy, Inc. (CHWY) stock fell by a further 8.10% in the after-hours when the company announced its third-quarter earnings, on December 09.
In the previous trading session, the stock was down by 6.32%, closing at $56.30 with a volume of 9.76 million shares. Following the news, the stock fell further to reach $51.74 at an after-hours’ volume of 1.67 million shares.
Currently, the 106.57 million shares of Chewy, Inc. (CHWY) trade at a market capitalization of $25.11 billion.
CHWY’s Earnings Report
The company announced its financial results for the third quarter of the fiscal year 2021, which ended October 31, 2021, on Thursday. According to the December 09’s report, CHWY had net sales of $2.21 billion in Q3 of 2021. This shows an increase of 24.1% year-over-year. Moreover, the net sales of the company were in line with both guidance and consensus estimates.
Further, the net loss of the third quarter was $32.2 million which included a $19.1 million share-based compensation expense.
Moreover, the adjusted EBITDA in the third quarter of fiscal 2021, was $6.0 million. This shows a growth of 9.9 percent year-over-year.
In addition, the third quarter’s gross margin increased by 90 basis points year-over-year, to 26.4%.
Partnership with Trupanion
On December 07, the company announced its expansion into pet insurance through its partnership with Trupanion. Trupanion Inc. (TRUP) is a leading pets’ medical insurance provider throughout the U.S., Canada, and Australia.
Moreover, the suite will contain both preventive care options and comprehensive insurance plans for accidents, etc.
In addition, this partnership will allow CHWY to anchor TRUP’s patented software for direct payment to vets. This will help in minimizing out-of-pocket expenses as well as increase access to care.
Giving Season, CHWY’s Donations
On November 22, the company announced its new campaign for supporting shelters and rescues with the help of customers. As a result, CHWY matched customer donations of $2 million in honor of the giving season. These donations were made between November 24 and 30, 2021, according to the announcement. Consequently, the total donations for 2021 surpassed $30 million.
The Vice President of CHWY, Mita Malhotra commented that the season of giving is a great opportunity for making the lives of shelter and rescue pets better. Further, that the company wanted to give pet parents the opportunity to donate once and give twice.
