Chewy (NYSE: CHWY) wasn't much of a treat for shareholders on Thursday. Shares of the pet food and products company sank by nearly 2% as the market reacted to the fiscal third-quarter report that it published after hours on Wednesday. That bucked the trend of the wider market, as the S&P 500 index rose by 0.8% on the day.
Chewy missed on both the top and bottom lines
For the quarter, which ended Oct. 29, Chewy's net sales came in at $2.74 billion. This was 8% higher than in the same period of 2022, but didn't quite reach the average analyst estimate of $2.76 billion.
The same applied to Chewy's GAAP (generally accepted accounting principles) net loss, which was nearly $36 million ($0.08 per share), compared to a profit of $2.3 million in the prior-year period. Prognosticators following the stock had been collectively modeling for a narrower loss of $0.06 per share.
Despite the double miss, the company's management waxed positive about the quarter. CEO Sumit Singh said that Chewy gained market share during the period, and posted better growth than the low-single-digit percentage increases of its rivals.
Net sales guidance also fell short
Chewy also proffered net sales guidance for both its fiscal fourth quarter and the entirety of fiscal 2023. Management anticipates that for the year, net sales will amount to between $11.08 billion and $11.10 billion. That's a reduction from its previous guidance range, and notably short of the consensus analyst forecast of $11.25 billion.
Separately, Chewy also announced a major C-suite transition. It is appointing veteran executive David Reeder as its CFO, effective on Feb. 14. Reeder will replace current interim CFO Stacy Bowman, who is to continue in her role as chief accounting officer.
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