Q2 revenue exceeded expectations! American pet e-commerce Chewy plans to enter Canada!

It is learned that according to foreign media reports, on August 30, US pet e-commerce Chewy released a "gratifying" second-quarter 2023 financial report, mainly due to the strong performance of non-essential consumer goods and healthcare categories and the growing popularity of its Autoship pet supplies delivery service.

According to the financial report, Chewy's net sales in the second quarter were $2.78 billion, a year-on-year increase of 14.3%. Adjusted EBITDA was $86.9 million, exceeding analysts' expectations of $70.6 million and $83.1 million in the same period last year. Net profit was $18.9 million, or 4 cents per share, compared with $22.3 million, or 5 cents per share, in the second quarter of last year.

"We delivered solid second quarter results, exceeding our sales and margin expectations," said Sumit Singh, Chewy CEO. "Chewy saw significant order growth as customers recognized the key differentiators of our personalized Autoship delivery service, best-in-class healthcare experience, and overall value proposition."

Sumit Singh also pointed out that there has been a shift in consumer buying behavior, with pet owners prioritizing consumables and health products over traditional durable goods. He said: "In the past, each customer spent $80 on pet consumables and health products and $20 on durable goods. But now, customers spend most of their money on consumables and health products."

Changes in consumer purchasing behavior provide Chewy with an important opportunity to further establish itself as a leader in online pet retail. Currently, the U.S. pet market is worth billions of dollars. Sumit Singh said that in the long run, the shift from offline to online shopping for pet products will continue. This means that it will become more important to solve customer experience friction and improve registration, discovery, and checkout processes.

Looking ahead, Chewy expects third-quarter net sales to be between $2.74 billion and $2.76 billion; and full-year sales to be between $11.15 billion and $11.35 billion.

Chewy also said it will enter the Canadian market later this year, and it plans to establish itself as a local brand that meets the specific needs of Canadian customers. Sumit Singh said: "We are not going to appear in Canada as an American brand. We will work hard to understand our customers, understand their needs, wants, desires and behaviors, and then provide products in a way that best suits them."

Editor ✎ Nicole/

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