Proactive Investors - Chewy Inc experienced a surge in premarket trading on Thursday, with shares rising by nearly 20% following the announcement that the online pet supplies retailer has revised its annual revenue forecast and plans to enter the Canadian market.
During the first quarter, the company pleasantly surprised investors by reporting a profit, attributed to robust customer loyalty driving sales.
For the first quarter, Chewy (NYSE:CHWY) reported a net income per share of $0.20, excluding items, surpassing analysts' expectations of a loss of $0.04 per share.
In an earnings call, Chewy revealed its plans to expand into Canada during the third quarter. The Canadian pet health care market represents around $15 billion in annual sales.
Chewy CEO Sumit Singh said the company has confidence in its long-term profitability, cost, and capital expenditure targets even as it plans to make a significant push north of the border.
Looking ahead, the company now anticipates its full-year revenue to fall between $11.15 billion and $11.35 billion, compared to the previous range of $11.10 billion to $11.30 billion. Analysts, on average, had projected revenue of $11.31 billion for 2023.