Chewy Inc. (NYSE: CHWY) is increasingly becoming a market leader in the provision of pet healthcare. The company is coming off an impressive third-quarter, depicted by strong demand for its pet products, leading to robust revenue growth. The online pet food provider also topped earnings estimates affirming growth in the top line and bottom line.
Expanding Chewy Business Empire
According to the Chief Executive officer, Summit Singh continued focus on execution and inventiveness remains the key driver of robust revenue growth. Management has, in the recent past, focused on reformatting proprietary brands and the overall assortment strategy.
The introduction of compelling merchandise and improving discoverability has allowed Chewy to target a much bigger target market online. Likewise, the company is playing a pivotal role in pet healthcare by making it affordable and readily available.
In the recent past, the company has expanded its pet pharmacy business to launch compounded medications for pets. As it stands, Chewy allows pet owners to order customized pharmaceutical-grade prescription medications that can be fulfilled by available alternatives.
The launch of a telehealth service marks yet another important milestone in the expansion of the company’s core business. As it stands, the company has expanded its addressable market, expected to continue strengthening revenue streams.
Sales Growth
While Chewy has traditionally competed in the U.S pet food, it is increasingly becoming an industry leader in telehealth, expanding its long-term potential. With the pandemic shifting everything online, Chewy remains well-positioned to profit as an online retailer of pet products and supplies.
Going by the milestones achieved in the quarter, it does not come as a surprise that revenue grew 45% year over year to $1.78 billion. Gross Margin expanded 180 basis points to 25.5%. While the company did post a net loss of 8 cents a share, it was still higher than a net loss of 14 cents a share expected.
The stock has been on an impressive run and now looks set to continue edging higher in the aftermath of the earnings beat and reaffirmed long term prospects.