Online pet retailer Chewy Inc. (NYSE: CHWY) has seen its promotions gain more than 50% in the past year. The company increased its number of customers and their spending on platforms during the COVID-19 pandemic. It seems like Chewy Inc. (CHWY) has no plans to slow its growth rate despite the changing situation.
It is becoming increasingly popular to supply pet supplies, and the ongoing COVID-19 outbreak has only accelerated this trend. In particular, many people adopted pets during forced self-isolation. The new owners soon became Chewy online store customers.
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Today, there are three main product categories on the Chewy Inc. (CHWY) platform: consumables, consumer goods, and other products and services. Products in the first category are primarily related to food and hygiene. In the first quarter of 2021, Chewy’s sales in this segment accounted for almost 70% of the company’s revenue, and this was driven by the Autoship application, which allows for customized deliveries of goods in certain intervals.
As part of the second category, Chewy Inc. (CHWY) offers toys, clothing, and utensils for pets. In the third segment are services, including Connect With a Vet, a telemedicine service becoming increasingly popular.
The company reported almost 16 percent revenue growth in this line of business in their latest quarterly report. Chewy Inc. (CHWY) believes remote veterinary services can drive growth, including growth in revenue per client. This service is already available to Autoship subscribers.
Currently, the company has 19,8 million active customers, which is 32% more than last year. The average net sales per active customer increased 8.7 % YoY to $388. Chewy Inc. (CHWY) has a low profit margin so far, but its gross margin increased from 23.4% to 27.6% during its fiscal first quarter.
At the close of trade on August 3, CHWY traded at $86.75, and its market cap was 37.32 billion.