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from the losing-money-on-every-sale-but-will-make-it-up-with-volume dept.
Chewy raises $1 billion in IPO
It will rain cats and dogs on Wall Street Friday: Online pet supplies retailer Chewy is set to make its debut. And it should be a strong one. Chewy, which was bought by retailer PetSmart in 2017 for nearly $3.4 billion in 2017, priced its initial public offering Thursday at $22 a share. That's above the expected range and values Chewy at $8.8 billion. The company will raise $1 billion from the stock sale and will trade on the New York Stock Exchange under the ticker symbol CHWY.
Chewy is growing rapidly, despite competitive threats from Amazon (AMZN) as well as food giant General Mills (GIS), which recently acquired pet food seller Blue Buffalo.
Sales soared 68% last year to more than $3.5 billion. But the company is still losing money. It reported a net loss of $268 million in 2018, following a $338 million loss a year earlier.
Unicorn meat.
(Score: 0) by Anonymous Coward on Monday June 17 2019, @01:19AM (1 child)
orealy? Then why are sales at Amazon still going up? Their prices (in many cases) are not very good anymore. Most people (imo) aren't very good comparison shoppers (or aren't willing to take the time), even when it's easy on the internet.
(Score: 0) by Anonymous Coward on Monday June 17 2019, @09:27AM
Amazon is a cross between a giant department store and a convenience store. While you're there they try to push as much in front of you at once, and use their position - and free shipping - to get you to buy it from them to save time.
Most pet owners are much more selective and picky when shopping for their pets. And because pet food is a consumable it is much more price sensitive than one-time purchases.