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Why Chewy Stock Jumped Today

By Howard Smith - Mar 31, 2021 at 10:33AM

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The online pet retailer surprised analysts with a fourth-quarter profit.

What happened

Online pet supplies retailer Chewy (CHWY 6.15%) has been mentioned in the news more lately for its co-founder and former CEO Ryan Cohen's work trying to turn GameStop's business around. But Chewy is making its own news Wednesday morning, after reporting better-than-expected quarterly earnings. As of 10:15 a.m. EDT, Chewy shares were trading up 10%.

So what

Chewy reported a surprise profit for its 2020 fiscal fourth quarter ended Jan. 31, and 47% growth in net sales for the full fiscal year versus the prior-year period. The company took advantage of stay-at-home requirements during the pandemic as people not only added new pets to households, but also embraced online shopping

girl in indoor makeshift fort playing with puppy

Image source: Getty Images.

Now what

Though Chewy reported a net loss of $92.5 million for the full year, it managed to earn a positive net income of $0.05 per share in the fourth quarter. Analysts had expected the company to report a loss of $0.10 per share for the period. 

Chewy CEO Sumit Singh praised the company's progress that led to its first quarter of positive net income. He said in a statement, "Years of preparation and focus have positioned us as the Internet's preeminent neighborhood pet store and a leading pure-play e-commerce company in the pet space." 

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Stocks Mentioned

Chewy, Inc. Stock Quote
Chewy, Inc.
CHWY
$27.11 (6.15%) $1.57
GameStop Corp. Stock Quote
GameStop Corp.
GME
$137.21 (6.81%) $8.75

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