U.S. pet e-commerce company Chewy announces second quarter financial results

On Wednesday, U.S. pet e-commerce company Chewy released its second-quarter 2021 financial report. According to data released by Chewy, sales in the second quarter reached US$2.155 billion, a year-on-year increase of 26.8% ;

Net loss was $16.686 million, including $26.5 million in share-based compensation expenses; gross profit margin was 27.5%, up 200 basis points year-on-year; active users increased by 21%, and net sales per active user increased by 13%;

Adjusted EBITDA was US$23.3 million, up 50.5% year-over-year; adjusted EBITDA margin (the sum of an enterprise's earnings before interest, taxes, depreciation and amortization over a certain period) was 1.1%, up 20 basis points year-over-year.

Chewy CEO Sumit Singh said Chewy's financial report once again demonstrated the strength of Chewy's business model and the close connection between pets and pet owners, and he is confident that Chewy will be able to achieve better results under market conditions affected by the epidemic.

Chewy, once known as the "Amazon of the pet industry," is the largest vertical e-commerce company in the U.S. pet industry. It was co-founded by Ryan Cohen and Michael Day in 2011, but was acquired by its competitor PetSmart in 2017. After the acquisition, Chewy has grown rapidly and was successfully listed on the New York Stock Exchange in 2019. There are more than 45,000 kinds of products on its platform, including Chewy's own brands and prescription Rx food and Rx drug products, serving pets including dogs, cats, birds, reptiles, etc.

In terms of business management, Chewy will provide customers with 24-hour service and has also proposed an Autoship subscription plan , which can deliver goods to "poop shovelers" on a regular basis.

The pet profile feature launched by Chewy is also very popular among users. This feature records the pet's name, birthday and related information in the electronic profile system, and sends handwritten cards to pets on birthdays or holidays.

In June of this year , to celebrate the 10th anniversary of the company's establishment, Chewy launched two large murals called "Ultimate Pet Portraits" in its hometown of Boston and South Florida, and donated $100 to pets in need. As of that time, Chewy has donated more than $76 million in products.

As of December 2020, Chewy's market value has exceeded $31 billion and is still rising.

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Second quarter earnings