Chewy (CHWY) reported earnings on Tue 17 Sept 19 (a/h)

 ** charts after earnings **

 

Chewy misses by $0.11, beats on revs; guides Q3 revs above consensus; guides FY20 revs above consensus

Reports Q2 (Jul) loss of $0.21 per share, excluding non-recurring items, $0.11 worse than the S&P Capital IQ Consensus of ($0.10); revenues rose 43.1% year/year to $1.15 bln vs the $1.13 bln S&P Capital IQ Consensus.

• Gross margin of 23.6 percent expanded 300 basis points year-over-year and in line with expectations.
• Net loss of $82.9 million, including a non-cash share-based compensation charge of $43.8 million 
• Adjusted EBITDA(1) loss of $29.2 million improved 45 percent year-over-year
• Adjusted EBITDA margin of (2.5) percent expanded 410 basis points year-over-year and in line with expectations.

Co issues upside guidance for Q3, sees Q3 revs of $1.19-1.21 bln vs. $1.17 bln S&P Capital IQ Consensus.

Co issues upside guidance for FY20, sees FY20 revs of $4.75-4.80 bln (Prior $4.675-4.750 bln) vs. $4.73 bln S&P Capital IQ Consensus.

• Sees Adjusted EBITDA margin improvement of 420-450 bps yr/yr (Prior 400-450 bps)