Chewy CEO Sumit Singh reviewed the online pet supplies retailer’s most recent quarter in a Wednesday interview with CNBC’s Jim Cramer, and detailed strategy — namely a focus on scale, convenience and personalization.
“Pets…is a super emotive category,” Singh said. “And in an emotive category like this, when you show up with being best in class in what we do — which is e-commerce — but then we deliver service levels that you can only expect at the best local neighborhood pet stores, it kind of is the best of two worlds.”
Chewy posted quarterly results Wednesday before market open. The company beat on earnings and revenue, but guidance for the current quarter was slightly weaker than expected. On the earnings call, management highlighted growth in Chewy’s veterinary services arm, as well as its membership program.
Chewy stock opened up around 7% but saw a choppy day of trading, ultimately finishing the session up 1.52%.
Singh stressed that Chewy is growing and “aggregating share across the industry,” adding that the company “does not require investment” to keep growing its top line. Singh indicated the company is looking to expand its physical presence with vet care locations, telling Cramer to “expect us to densify our footprint as we move into next year.” The company currently has vet locations open in Texas, Arizona, Colorado, Florida and Georgia.
Singh also addressed the consumer landscape, telling Cramer that consumer spending at Chewy is up.
“Consumers continue to spend on consumables and health,” Singh said. “They’re still a little bit weary of discretionary, but at Chewy we grew discretionary at 18% year over year.”
