Don't Be Fooled by Chewy's Most-Cited Statistic
Online pet retailer (NYSE: CHWY) generated $3.1 billion in revenue during its latest quarter. The company makes a big deal about its Autoship subscription program, which allows customers to schedule recurring deliveries in exchange for a small discount. Nearly 84% of revenue now comes from what Chewy calls Autoship customer sales.
At first glance, you might think that "Autoship customer sales" represents sales made through the Autoship program. If that were the case, it would certainly be impressive and indicate that most of Chewy's revenue is recurring and predictable. Unfortunately, that is not the case. Instead, Chewy has carefully crafted a murky metric meant to dazzle investors.
Image source: Getty Images.
Source Fool.com
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