On Wednesday, Chewy Inc. (NYSE:CHWY) reported better-than-expected second-quarter 2024 results and reaffirmed annual guidance.

The company reported sales of $2.86 billion, up 2.6% year over year, almost in line with the consensus of $2.86 billion and the management guidance of $2.84 billion – $2.86 billion.

The retailer of pet supplies reported adjusted EPS of $0.24 compared to the consensus of $0.02 and $0.15 a year ago.

In the earnings conference call, the company said unique customers who placed orders through the app increased by approximately 13% year-over-year, with overall mobile app orders increasing by approximately 15%.

"We observed both higher units per order and better retention when customers download and use the Chewy app," said Sumit Singh, CEO.

"We ended the second quarter with approximately 20 million active customers and are encouraged to see net ads grow, even if modestly, on a sequential basis for the first time since Q1 2023," Singh added.

JP Morgan analyst writes, "We're encouraged that Chewy's Active Customers returned to growth for the first time since 1QFY23, building on potential industry greenshoots seen at 1QFY."

Though Chewy maintained its fiscal year 2024 sales guidance, JP Morgan notes that some investors expected a modest raise. The analyst is encouraged by improving Active Customer trends, meaningful Adjusted EBITDA upside, and significant capital returns.

JP Morgan maintains the Overweight rating on Chewy stock.

Price Action: CHWY stock is up 14.5% at $29.60 at last check Wednesday.

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Image via Chewy