Chewy (NYSE: CHWY) reported fourth-quarter earnings on Tuesday, which missed analyst estimates, as operating conditions in various locations continue to suffer. The company’s stock fell 14% during morning trading amid the news.
“What we saw play out in the fourth quarter of 2021 was the conflict between the fundamentally strong consumer demand that underpins our business and the highly challenging operating environment,” the company said in its letter to shareholders.
“We saw operating conditions in certain areas deteriorate as the quarter unfolded, particularly when Omicron’s mid-quarter arrival further disrupted already-weakened supply chains across our industry.” the company went on to say.
The American pet food retailer reported an earnings loss of USD0.15 per share, compared to the expected loss of USD0.08. Furthermore, revenue amounted to USD2.39 Billion, lower than analysts anticipated USD2.43 Billion.
“Our ability to deliver 24 percent net sales growth in 2021, on top of the outsized growth we delivered last year, reflects the durability of our business and the Pet category beyond the near-term benefits of the pandemic, and is a strong testament to Chewy’s ability to execute in the face of rapidly evolving macro conditions,” said Sumit Singh, Chief Executive Officer of Chewy. “Net sales per active customer, or NSPAC, of $430 is a new company high and demonstrates strong customer loyalty and engagement on our platform, as well as our ability to steadily grow share of wallet. As we look to 2022 and beyond, our innovation pipeline remains robust, our strategy remains intact, and we remain optimistic about the growth opportunity ahead of us.”