- Chewy Inc (NYSE: CHWY) CEO Sumit Singh gave an update about the company’s sales. This is what he said.
This week, Chewy Inc (NYSE: CHWY) CEO Sumit Singh was interviewed where he gave an update about the company’s sales. As new and existing pet owners have been stocking up on supplies during the pandemic, Chewy has been seeing its sales jump.
“The increased demand levels that we are experiencing are here to stay,” said Chewy Inc (NYSE: CHWY) CEO Sumit Singh in an interview with Bloomberg. “We do not view our first-quarter results as a one-off event.”
Singh added that Chewy will be able to continue growing its sales with 2020 being a pivotal year for the company.
First-quarter sales for the company were $1.62 billion, up 46% compared to the previous year. And the company also saw a record 1.6 million net active customers — which is more than double the average quarterly rate in 2019.
Chewy is also seeing a high percentage of new customers coming back to make a second purchase with more spent on follow-up orders.
The demand shock also caused elevated out-of-stock levels for certain products — which led to a higher rate of split customer orders. As a result, Chewy had to ship multiple boxes to the same user and ship more orders across longer distances. This caused higher freight and packaging costs for the quarter.
“Two-thirds of the supply shortage has actually already recovered and we’re in talks with suppliers to see the rest of the recovery as soon as possible,” Singh added.
Chewy’s stock price is up 99.2% over the last 6 months and 45.2% since it went public.
