chewy CEO Sumit Singh reflected on the online pet supplies retailer’s most recent quarter and detailed strategy, including its focus on scale, convenience and personalization, in an interview Wednesday with CNBC’s Jim Cramer.
“Pets… are a very emotional category,” Singh said. “And in a sentimental category like this, when we demonstrate what we do, which is best-in-class in e-commerce, yet provide a level of service that you would expect only at your best local pet store, it’s kind of the best of two worlds.”
Chewy announced quarterly results Wednesday before the market opened. The company beat expectations in terms of profits and sales, but its outlook for the quarter was slightly weaker than expected. During the earnings call, management highlighted growth in Chewy’s veterinary services segment and membership programs.
Chewy stock opened the day up about 7%, but had a volatile day of trading and ultimately closed up 1.52%.
Singh emphasized that Chewy is growing and “consolidating market share,” adding that the company “doesn’t need investment” to continue to grow sales. “Look for us to strengthen our footprint over the next year,” Singh told Kramer, hinting that the company is looking to expand its physical presence of veterinary care facilities. The company currently has veterinary locations in Texas, Arizona, Colorado, Florida and Georgia.
Mr. Singh also addressed the consumer situation, telling Mr. Kramer that consumer spending at Chewy is increasing.
“Consumers continue to spend money on consumables and health,” Singh said. “They’re still a little weary of discretionary power, but at Chewy, discretionary power grew 18% year over year.”
