Shares of Chewy surged greater than 13% in prolonged buying and selling Wednesday after the pet retailer posted earnings that beat Wall Avenue’s estimates.

This is how the digital retailer did in its fiscal first quarter in contrast with what Wall Avenue was anticipating, primarily based on a survey of analysts by Refinitiv:

• Earnings per share: 5 cents vs. a lack of 4 cents a share anticipated
• Income: $2.78 billion vs. $2.73 billion anticipated

The corporate’s reported web earnings for the three-month interval that ended April 30 was $22.18 million, or 5 cents a share, in contrast with $18.47 million, or 4 cents a share, a 12 months earlier.

Gross sales rose to $2.78 billion, up 14.7% from $2.43 billion a 12 months earlier.

Internet gross sales per energetic buyer and gross sales from autoship clients reached file highs within the quarter, Chewy stated in a press launch.

Gross margins have been up about 1 proportion level.

The earnings beat comes after the retailer posted its first annual revenue on the shut of fiscal 2022 earlier this 12 months. But it surely famous the pet business was seeing softness in discretionary and exhausting items classes, which carry increased margins than consumables like pet meals.