Investing.com -- Chewy Inc., an online pet products retailer, reported better-than-expected third-quarter earnings and revenue on Tuesday, with sales growing 4.8% year-over-year.
The company posted adjusted earnings per share of $0.20, surpassing the analyst estimate of $0.06 by $0.14. Revenue for the quarter came in at $2.88 billion, slightly above the consensus estimate of $2.86 billion and up from $2.75 billion in the same quarter last year.
Chewy (NYSE:CHWY)'s net income for the quarter was $3.9 million, or $0.01 per share, compared to a net loss in the year-ago period. The company's gross margin improved by 80 basis points to 29.3%, while adjusted EBITDA margin expanded by 180 basis points to 4.8%.
"Our third quarter results continued to build on the positive momentum we observed in Q2," said Sumit Singh, Chief Executive Officer of Chewy. "We delivered topline growth exceeding the high-end of our net sales guidance range, a sequential increase in active customers, continued adjusted EBITDA margin expansion, and robust free cash flow generation."
The company's stock was down 0.4% in after-hours trading following the earnings release, suggesting a relatively neutral market response to the results.
Chewy's performance demonstrates the resilience of its business model in the competitive pet products market, with improvements in profitability metrics despite modest revenue growth. The company's focus on operational discipline and execution appears to be yielding positive results in terms of margin expansion and bottom-line growth.