Yahoo Finance's Jared Blikre joined Yahoo Finance Live to break down Chewy's latest earnings.

Video Transcript

SEANA SMITH: We want to get to some breaking news. Chewy is out with its earnings report. The stock under a little bit of pressure. Jared Blikre has that for us. Jared.

JARED BLIKRE: Yeah, that's right. Stock's down about 2%, 3% in after-hours trading. I'll tell you what, the numbers are not bad. But the topline number for net sales, that came in just in line with Wall Street expectations at 2.14 billion. So maybe TheStreet was expecting a blowout in order to get the stock higher. But we still have the call at 5:00 PM. Here's some of the other numbers.

They managed a profit when TheStreet was expecting a loss of $11.7 million. Their-- excuse me, their net profit for the first quarter came in at $38.7 million, so a nice beat there. But they're also giving their projections for the second quarter and the full year. And the revenue numbers, they bumped up a little bit, but not a lot. So for the current quarter, 2.15 to 2.17 billion. And then for the full year, 8.9 to 9 billion. And again, those numbers were just a little bit lower from the former forecast.

Now also looking at gross margin, 27%-- 27.6%, that expanded 420 basis points year-over-year. Net margin of 1.8% improved 480 basis points year-over-year. And then a quick comment from the CEO. "2021 is already turning out to be an exciting and busy year for Chewy. We continue to execute against our growth roadmap, expand our customer base, increase share of wallet, and grow our addressable market expanding verticals." So bottom line here is a decent report, but not a blowout report.