Chewy Shares Drop Ten Percent After Q2 Report 2021 of the year

Online Animal Grocery Trader Chewy Releases 2nd Quarter Report 2021 of the year:

revenue increased by 26,8 %, to 2,16 billion dollars;
gross margin increased from 25,5 to 27,5 %;
direct losses halved, with 32,8 to 16,7 million;
adjusted EBITDA increased by 50,5 %, to 23,3 million.

“Indicators in the first half 2021 years have highlighted the strength of our business model again. The loyalty of our customers grows, and we are convinced of our own ability to achieve big results in the conditions of market uncertainty, which was caused by SARS-CoV-2 ", - said the head of Chewy Sumit Singh.

After the post-market report, the shares of the trading company fell by ten percent, to 78,7 $. Revenue, profit and forecast for the 3rd quarter were slightly below the expectations of specialists.

In a conversation with CNBC, Singh said, he doesn't care about falling stocks. The head of the company was satisfied with the financial results: “We are really optimistic about our business”.

The past year has been a good one for Chewy. During quarantine restrictions, people often started animals, did the shopping online. For example, in the 2nd quarter 2020 the years of the company's sales grew by forty-seven percent.

Despite the easing of quarantine restrictions and more unhurried growth in sales, the merchant's client base does not stop expanding. In the 2nd quarter, the number of active clients grew by 21,1 %, to 20 million. And the revenue per 1 active client increased by 13,5 %, with 356 to 404 $.

“The spending of our clients is at the highest level ever.. We have more clients, and they waste more. They stay with us, so we are happy with our business", added Singh..

According to company forecasts, sales in the third quarter will be 2.2-2.22 billion dollars - up 23-25%, than a year ago. Sales for the year can reach 8.9-9 billion, which is 25-26% more compared to 2020 year.