Chewy (NYSE:CHWY) reported better-than-expected revenue and adjusted earnings per share for the first quarter, but weak guidance sent its shares lower pre-market.
The company reaffirmed its full-year sales guidance in the range of $12.3 billion to $12.45 billion, representing growth of 6% to 7%, at the midpoint slightly below Street estimates of $12.42 billion.
First quarter income also fell short of expectations. GAAP net income was $62.4 million or $0.15 per share, below estimates of $68.9 million or $0.16 per share.
Adjusted earnings per share (EPS), on the other hand, of $0.35 beat estimates of $0.34.
Revenue increased by 8.3% from the year-ago quarter to $3.12 billion, ahead of estimates of $3.08 billion.
“We delivered topline growth exceeding the high-end of our net sales guidance range, year-over-year growth in active customers, and compelling profitability and free cash flow generation,” Chewy CEO Sumit Singh said in a statement.
“These results are a testament to the resiliency of the pet category and underscore the strength of Chewy’s value proposition and our ability to continue to gain market share.”
Shares of Chewy traded 7% lower at about $43 before US markets opened on Wednesday.