Chewy (NYSE:CHWY) fell Thursday despite Chewy beating estimates on the top and bottom lines for the fourth quarter. The company reported earnings of one cent per share on $2.71 billion of revenue. Analysts surveyed by Refinitiv had penciled in a loss of 11 cents per share on $2.64 billion of revenue. However, the company’s active users’ metric was marginally lower year over year.
Fourth-quarter net sales were $2.71 billion improved 13.4 percent year-over-year. Gross margin was 28.1% expanded 270 basis points year over year. Net income was $6.1 million, including share-based compensation expense of $50.2 million.
For the full year, net sales of $10.1 billion improved 13.6% year over year. Gross margin of 28% expanded 130 basis points year over year. Net income of $49.2 million, including share-based compensation expense of $163.2 million
“Our fourth-quarter and full-year fiscal 2022 results cap an incredible year. Against the backdrop of a rapidly changing operating and economic environment, Chewy produced record-high revenue, profitability, and free cash flow,” said CEO Sumit Singh. “Chewy’s disciplined execution and dedication to serving pet parents and partners with a widening ecosystem of offerings led to another year of market share gains in the pet category, which continues to demonstrate its resilience in the present environment.”
CHWY began Thursday trading down $1.71, or 4.5%, to $36.05.
