Pet supply retailer Chewy Inc. (NYSE: CHWY) experienced a boost in its stock value on Wednesday following the release of its better-than-anticipated second-quarter 2024 earnings report. The company reported adjusted earnings per share (EPS) of $0.24, surpassing the consensus of $0.02 and showing significant growth compared to the previous year's $0.15. Chewy also reported sales of $2.86 billion, a 2.6% increase year over year, aligning closely with the consensus.

A notable success for Chewy was the growth in sales from Autoship customers, which reached $2.24 billion, an impressive 5.8% increase. Autoship customers are defined as those who have received an order through the Autoship subscription program within the preceding 364 days. Additionally, Chewy achieved a 6.2% rise in Net Sales Per Active Customer, reaching $565, setting a new record for the company.

Sumit Singh, CEO of Chewy, expressed satisfaction with the company's performance, highlighting their successful execution and ability to deliver net sales at the higher end of their guidance range. Singh also attributed these results to Chewy's compelling value proposition, which has contributed to increased customer engagement. Chewy celebrated a customer base of 20 million active customers, which saw sequential growth during the quarter.

Looking ahead, Chewy remains confident in its future prospects. The company provided guidance for the third quarter, projecting sales of $2.84 billion to $2.86 billion, indicating a 3% to 4% year-over-year growth. They are optimistic about achieving their fiscal year 2024 sales forecast of $11.6 billion to $11.8 billion, showcasing a 4% to 6% increase compared to the previous year. Furthermore, Chewy revised its adjusted EBITDA margin guidance to 4.5% to 4.7%, an upward adjustment from the previous forecast of 4.1% to 4.3%.

In response to the positive earnings report, Chewy Inc.'s stock experienced a 2.44% increase during the premarket session, reaching $26.49 at last check on Wednesday. Investors welcomed the company's strong financial performance and future projections, demonstrating confidence in Chewy's continued success in the competitive pet supply market.

Chewy's impressive second-quarter earnings, surpassing expectations and recording a new sales record per active customer, signifies the company's commitment to delivering value and maintaining a loyal customer base. With strong guidance for the coming quarters, Chewy continues to show resilience and growth, solidifying its position as a leading player in the pet supply retail industry.