Online pet products pusher Chewy posted better-than-expected earnings for Q3 ending November 1, 2020. For the quarter, Chewy [$CHWY] reported revenue of $1.78 billion, up 45%, and ahead of the company’s previous guidance range of $1.7 billion to $1.72 billion.
The company reported a loss of 8 cents a share, narrower than the Street consensus forecast of a loss of 13 cents a share. Gross margin in the quarter was 25.5%, up 180 bps from a year ago. Net sales per active customer was $363, up 2.8% from a year ago. Chewy had 17.8 million active customers, up 39.8% from a year ago. Adjusted EBIDTA was $5.5 million.
Chewy sees Q4 revenue of $1.94 billion to $1.96 billion, up 43% to 45% from 2019 Q4. For the full year ending in January, Chewy sees revenue of $7.04 billion to $7.06 billion, above its previous forecast range of $6.775 billion to $6.825 billion. The company sees an adjusted EBITDA margin of 0.2% to 0.4%, ahead of its previous forecast of break-even, give or take 0.3%.