Chewy reports Q3 beat, but shares drop 9% on revenue miss & weak guidance

investing.com:

Chewy (NYSE:CHWY) shares fell more than 9% after-hours today following the company’s reported Q3 results, with revenue of $2.74 billion coming in below the consensus estimate of $2.76B. Q3 EPS was $0.15, compared to the consensus estimate of ($0.06).

“Chewy continues to gain market share, with third quarter net sales increasing 8% against industry growth in the low single digits. Our team also continues to execute admirably, as reflected by another strong quarter of 28.5% gross margin and 3.0% adjusted EBITDA margin profitability,” said CEO Sumit Singh.

For Q4/23, the company expects net sales to be in the range of $2.78-$2.80B, missing the consensus estimate of $2.93B.

For the full year, the company sees net sales at $11.08-$11.10B, again worse than the consensus of $11.25B.

Furthermore, the company announced the appointment of David Reeder as CFO, effective February 14, 2024.