Live news: Pet retailer Chewy’s shares surge after unexpected profit

Shares of petcare retailer Chewy surged as much as 13 per cent after it posted a surprise profit and a strong full-year outlook.

The company earned $22.2mn in net income, a 20 per cent year-on-year increase and a shock to analysts, who expected a loss of $10.6mn. Its $2.78bn in sales was a 14 per cent improvement compared with the same quarter last year.

A 0.9 per cent dip in active customers to 20.4mn was more than offset by a nearly 15 per cent increase in sales per active customer.

Chewy, which will begin its international expansion in Canada next quarter, forecast full-year sales between $11.15bn and $11.35bn, within analysts’ estimates for $11.28bn.