Chewy Inc. shares declined during pre-market trading Tuesday - after reporting wider-than-expected losses the previous day, and ahead of the expiry of early investors’ lock-up period.
On Monday, the online retailer of pet food and other pet-related products reported third quarter loss of -20 cents per share –which was wider than anticipated.
However, total sales increased +40% from the same period last year to $1.23 billion. The company’s customer base grew +33% to 12.7 million.
For the full-year, Chewy expects sales to range between $4.82 billion and $4.84 billion. It projects adjusted operating profit margin improvement of between 4.4% and 4.6%.
In June, Chewy went public, finishing its first day of trading at $34.99 per share , +59% above its IPO price. It raised more than $1 billion in its public debut. But the lock-up expiry is tomorrow, which would let some 83% of the outstanding shares to be freely traded – which means, early investors get a chance to cash out from their IPO holdings.