Chewy (CHWY.US) shares surged almost 20.0% on Thursday after the online retailer of pet food and other pet-related products reported better than expected quarterly results.
- Company unexpectedly earned 4 cents per share, while analysts expected a 14 cents per share loss;
- Revenue of $2.43 billion also topped market estimates of $2.41B, and represents 12.6% increase compared to previous year;
- “Fiscal year 2022 is off to a good start as we drove solid 14 percent top-line growth and delivered sequential improvements in gross margin and profitability,” CEO Sumit Singh explained. “Moving forward, Chewy’s value proposition is as compelling as ever and we continue to innovate robustly, attract customers with high lifetime values, drive engagement, and capture a greater share of wallet.”
- Chewy maintained its prior guidance even despite gross margin declined to 27.5% and company expects continued problems with supply chain and inflation issues;
Chewy (CHWY.US) stock launched today’s session with a bullish price gap and if current sentiment prevails upward move may accelerate towards major resistance area around $42.50 which is marked with upper limit of the 1:1 structure, 78.6% Fibonacci retracement of the upward wave launched in March 2020 and upper boundary of the descending channel. On the other hand, if upward move turns out to be short-lived, recent lows at $20.95 may be retested. Source: xStation5
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