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Chewy higher after-hours following earnings report

Chewy posted earnings that beat expectations on the top line, posting fourth quarter net sales of $2.04B, topping the estimated $1.96B. Yahoo Finance's Ines Ferre breaks down the details.

Video transcript

ADAM SHAPIRO: Hey, we've got to go to Ines Ferre. We've got Chewy earnings. How'd they do?

INES FERRE: Well, Adam, a big beat on the top-line fourth-quarter net sales coming in at $2.04 billion, beating estimates of $1.96 billion. Chewy swung to a fourth-quarter profit, seeing a surge in customers during the pandemic. Its fourth-quarter gross margin of 27.1% expanded 300 points. And the company's first-quarter net sales beat forecasts.

Right now, we're seeing the stock-- in after-hours-- up more than 6% and some commentary from Chewy CEO Sumit Singh saying, "During this time"-- 2020, which he said was an incredibly challenging and unpredictable year for everyone-- he said, "Chewy performed exceptionally well and made significant strategic and operational progress. Specifically, we grew net sales by 47% year over year, increased our customer base by 43% year over year, delivered our first full year of positive adjusted EBITDA, and generated the company's first quarter of positive net income in the fourth quarter of 2020."

Adam, Seana.

ADAM SHAPIRO: Ines, thank you.