Market Overview - U.S. stocks showed mixed performance with the Nasdaq Composite gaining over 100 points, while the Dow decreased by 0.17% to 45,632.29 and the S&P 500 rose by 0.64% to 6,554.06 [1] - Information technology shares increased by 2.2% on the same day [1] Company Performance - Chewy, Inc. (CHWY) shares fell approximately 14% after reporting second-quarter results, with adjusted earnings of 33 cents per share, exceeding market estimates of 14 cents, and quarterly sales of $3.104 billion, surpassing expectations of $3.080 billion [3] Commodity Market - Oil prices rose by 1.3% to $63.46, while gold increased by 0.2% to $3,689.50. Silver and copper also saw gains of 0.7% to $41.630 and 0.3% to $4.5845, respectively [5] European Market - European shares experienced an upward trend, with the eurozone's STOXX 600 rising by 0.3% and Spain's IBEX 35 Index increasing by 1.3% [6] Asian Market - Asian markets closed higher, with Japan's Nikkei 225 gaining 0.87% and Hong Kong's Hang Seng rising by 1.01% [7] Notable Stock Movements - Wearable Devices Ltd. (WLDS) shares surged by 412% to $5.20 following a year-over-year increase in H1 EPS results and a new patent announcement [8] - Cuprina Holdings (Cayman) Limited (CUPR) shares increased by 212% to $2.19 after announcing exclusive licensing rights for medical waste recycling technology [8] - YY Group Holding Limited (YYGH) shares dropped by 61% to $0.3674 after pricing a registered offering of ordinary shares and warrants [8]

Core Insights - Allegiant Gold Ltd. has initiated a fully-funded 2,000 metre diamond core drill program at the McIntosh zone of the Eastside Gold-Silver Project to explore vertical extensions of high-grade gold discoveries [1][4] - The Eastside Project currently has an inferred resource of approximately 1.4 million ounces of gold and 8.8 million ounces of silver, with only a small portion of the area explored [1][8] - The 2025 drilling program aims to build on the success of the 2021 campaign, which reported the highest-grade intercepts at Eastside [4] Program Details - The current drill program will consist of three holes (ES-331, ES-337, ES-338) totaling around 2,000 metres, as part of a larger 20,000 metre drilling initiative [6] - Holes ES-331 and ES-338 will test vertical extensions of previously drilled holes down to 600 metres, while hole ES-337 is designed to intersect various structures in the high-grade zone [6] - Results from the drilling are expected in October and November 2025 [6] Historical Context - The 2021 drilling campaign returned significant results, including hole ES-243 which reported 148 metres of 2.6 g/t Au, and hole ES-239 which reported 3.1 metres of 39.0 g/t Au [6] - The exploration model for the Eastside Project is based on over 60,000 metres of drilling and various geological data, indicating a strong correlation between mineral grade and known structures [4] Company Overview - Allegiant Gold Ltd. owns three gold projects in the mining-friendly jurisdiction of Nevada, with the Eastside project being the flagship [9] - Less than 20% of the Eastside property has been explored, indicating significant potential for resource expansion [9] - Preliminary metallurgical testing suggests that both oxide and sulphide gold mineralization at Eastside can be processed through heap leaching [9]

About this content About Sean Mason Sean Mason is a Senior Journalist at Proactive, having researched and written about Canadian and US equities for 20 years. Sean graduated from the University of Toronto with a BA in history and economics and has also passed the Canadian Securities Course. He previously worked at Investors Digest of Canada, Stockhouse, and SmallCapPower.com. Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and action ...

Group 1 - Oracle's stock surged by 32.7% following a significant increase in cloud database revenue, which rose by 1529% in the last quarter [1] - Synopsys experienced a decline of 26.9% due to Q3 performance and Q4 guidance falling short of expectations [1] - Chewy, the pet e-commerce company, saw an 8.7% drop in stock price as Q2 net profit significantly decreased year-over-year [1] Group 2 - GameStop's stock increased by 5.8% as Q2 revenue exceeded expectations [1] - Bilibili's stock rose by 5.6%, with plans to launch a new card game titled "Three Kingdoms: Hundred Generals Card" during the upcoming Spring Festival next year [1]

Financial Performance - Chewy reported quarterly earnings of $0.33 per share, matching the Zacks Consensus Estimate, and an increase from $0.24 per share a year ago [1] - The company posted revenues of $3.1 billion for the quarter ended July 2025, exceeding the Zacks Consensus Estimate by 0.71% and up from $2.86 billion year-over-year [2] - Chewy has surpassed consensus EPS estimates two times in the last four quarters and topped consensus revenue estimates four times in the same period [1][2] Stock Performance - Chewy shares have increased approximately 25.7% since the beginning of the year, outperforming the S&P 500's gain of 10.7% [3] - The sustainability of the stock's price movement will depend on management's commentary during the earnings call [3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.31 on revenues of $3.04 billion, and for the current fiscal year, it is $1.28 on revenues of $12.48 billion [7] - The estimate revisions trend for Chewy was unfavorable prior to the earnings release, resulting in a Zacks Rank 4 (Sell) for the stock, indicating expected underperformance in the near future [6] Industry Context - The Internet - Commerce industry, to which Chewy belongs, is currently in the top 34% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Another company in the same industry, PetMed, is expected to report a quarterly loss of $0.06 per share, reflecting a year-over-year change of -133.3% [9]

Core Viewpoint - Chewy's shares declined in early trading following the release of its fiscal second-quarter earnings, which met analysts' expectations but were deemed insufficient to satisfy investor sentiment [1] Company Summary - Chewy reported fiscal second-quarter earnings that aligned with analysts' projections, indicating stable performance in terms of revenue expectations [1] - Despite meeting projections, the earnings report did not meet the market's expectations for growth, leading to a drop in share price [1] Industry Summary - The online pet product retail sector continues to face challenges in meeting investor expectations, as evidenced by Chewy's recent performance [1] - Market sentiment appears to be cautious, reflecting broader trends in consumer spending and e-commerce growth within the pet products industry [1]

Financial Data and Key Metrics Changes - Q2 net sales grew by nearly 9% year over year to $3.1 billion, exceeding the high end of guidance range [5][17] - Gross margin reached 30.4%, expanding by nearly 90 basis points year over year [7][17] - Adjusted net income was $141.1 million, representing a 34.8% increase year-over-year [18] - Adjusted EBITDA was $183.3 million, with a margin of 5.9%, reflecting an 80 basis points year-over-year margin expansion [8][19] - Free cash flow for Q2 was nearly $106 million [8][19] Business Line Data and Key Metrics Changes - Autoship customer sales reached $2.58 billion, representing 83% of Q2 net sales and growing nearly 15% year over year [5][6] - Hardgoods business grew over 15% in Q2, driven by structural volume growth [6] - Active customers increased to 20.9 million, reflecting 4.5% year-over-year growth [7] Market Data and Key Metrics Changes - The overall industry is experiencing low to mid-single-digit growth, while Chewy is gaining market share [5][21] - NESPAC (Net Effective Sales Per Active Customer) reached $591, representing 4.6% year-over-year growth [7] Company Strategy and Development Direction - Chewy is focused on expanding its Chewy+ membership program and private brands, including the launch of a new fresh dog food line called Get Real [9][12] - The company plans to open 8 to 10 new Chewy Vet Care practices in fiscal year 2025 [9] - Chewy aims to mitigate tariff-related costs and invest in growth initiatives while maintaining a strong customer experience [15][22] Management's Comments on Operating Environment and Future Outlook - Management expects the second half of 2025 to be dynamic, with a focus on growth despite potential inflationary pressures [15] - The company anticipates continued share gains in the U.S. market and a strong long-term outlook [15][22] - Management remains optimistic about the performance of the Chewy+ program and its contribution to net sales [10][74] Other Important Information - The company repurchased approximately 3 million shares for about $125 million in Q2 [19] - Chewy ended the quarter with approximately $592 million in cash and cash equivalents, remaining debt-free [20] Q&A Session Summary Question: Can you talk more about the investments required in the back half and into 2026? - Management indicated that investments will focus on enhancing customer discoverability and increasing participation in Chewy+ without significant external marketing spend [26] Question: How should we think about the leverage path into the back half? - Management expects SG&A leverage to improve in the back half of the year, driven by the ramp-up of fulfillment centers and structural growth [34][39] Question: Can you unpack the Q2 gross margin improvement? - Management attributed gross margin expansion to product mix, increasing Autoship penetration, and a rational promotional environment [43] Question: What are your expectations regarding net household formations? - Management expects pet households to remain stable or slightly increase, with Chewy continuing to gain market share [61] Question: How is Chewy positioned against retail giants? - Management emphasized Chewy's unique value proposition, combining e-commerce efficiency with personalized service, allowing for continued market share growth [72][74] Question: Can you elaborate on the quality of cohorts improving year-over-year? - Management noted that improved customer engagement through programs like Autoship and Chewy+ is leading to higher NESPAC and retention rates [78]

Financial Data and Key Metrics Changes - Q2 net sales grew by nearly 9% year over year to $3.1 billion, exceeding the high end of guidance [6][19] - Gross margin reached 30.4%, expanding by nearly 80 and 90 basis points sequentially and year-over-year, respectively [8][19] - Adjusted EBITDA was $183.3 million, representing a 5.9% margin and a year-over-year increase of over 80 basis points [9][21] - Free cash flow generated was nearly $106 million in the quarter [9][21] - Adjusted net income increased by 34.8% year over year to $141.1 million, with adjusted diluted earnings per share of $0.33 [21][25] Business Line Data and Key Metrics Changes - Autoship customer sales reached $2.58 billion, representing 83% of Q2 net sales and growing nearly 15% year over year [6][7] - Hardgoods business grew over 15% in Q2, driven by structural volume growth [7] - Chewy Plus program showed strong growth, with approximately 3% of total monthly sales attributed to members [11][12] Market Data and Key Metrics Changes - Active customers increased to 20.9 million, reflecting 4.5% year-over-year growth [8] - NESPAC (Net Effective Sales Per Active Customer) reached $591, representing 4.6% year-over-year growth [8] Company Strategy and Development Direction - Chewy is focused on expanding its Chewy Plus membership and private brands, with a new product line "Get Real" launched for fresh dog food [12][15] - The company aims to mitigate tariff-related costs and invest in growth initiatives while maintaining a strong customer experience [17] - Chewy plans to open 8 to 10 new veterinary practices in fiscal year 2025, enhancing its Chewy Vet Care network [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Chewy's ability to gain market share despite a challenging retail environment [17] - The company anticipates continued growth in the second half of 2025, with net sales expected to be between $3.07 and $3.1 billion [23] - Management expects to maintain a full-year adjusted EBITDA margin outlook of 5.4% to 5.7% [24] Other Important Information - The company repurchased approximately 3 million shares for a total of approximately $125 million in Q2 [21][22] - Chewy ended the quarter with approximately $592 million in cash and cash equivalents, remaining debt-free [22][23] Q&A Session Summary Question: Investments required in the back half and increasing awareness of new offerings - Management indicated that they are focusing on existing members for Chewy Plus and have not spent additional marketing dollars externally [27][28] Question: SG&A deleverage and its components - Management expects SG&A leverage in 2025, with temporary costs attributed to the ramp-up of the Houston fulfillment center and higher inventory processing costs [36][42] Question: Q2 gross margin improvement and pricing investments - Management noted that gross margin drivers include product mix, increasing Autoship penetration, and a rational promotional environment [45][46] Question: Potential of the fresh and frozen segment - Management estimates the total addressable market for fresh and frozen pet food to be between $8 billion and $12 billion, with strong initial customer reception for the "Get Real" product line [55][56] Question: Advertising environment and macro expectations - Management reported stable pet household formation trends and competitive intensity in advertising, with expectations for continued customer growth [60][66] Question: Competitive advantages and share gains - Management emphasized Chewy's unique value proposition, combining e-commerce efficiency with personalized service, and highlighted growth opportunities in health and wellness segments [70][76] Question: Quality of customer cohorts and Autoship growth - Management noted improvements in customer retention and engagement through programs like Autoship and Chewy Plus, leading to higher NESPAC [79][82]

Financial Data and Key Metrics Changes - Q2 net sales grew by nearly 9% year over year to $3.1 billion, exceeding the high end of guidance range [5][17] - Gross margin reached 30.4%, expanding by nearly 80 and 90 basis points sequentially and year-over-year, respectively [7][17] - Adjusted net income was $141.1 million, representing a 34.8% increase year over year, with adjusted diluted earnings per share of $0.33 [18][23] - Free cash flow for Q2 was nearly $106 million, with a robust liquidity position of approximately $1.4 billion [8][20] Business Line Data and Key Metrics Changes - Autoship customer sales reached $2.58 billion, representing 83% of Q2 net sales and growing nearly 15% year over year [5][6] - Hardgoods business grew over 15% in Q2, driven by structural volume growth [6] - Chewy Plus program showed strong growth, with approximately 3% of total monthly sales attributed to members [10][74] Market Data and Key Metrics Changes - Active customers increased to 20.9 million, reflecting 4.5% year-over-year growth [7] - NESPAC (Net Effective Sales Per Active Customer) reached $591, representing 4.6% year-over-year growth [7] - The overall pet industry is expected to grow in low single-digit to mid-single-digit range, while Chewy is growing at a rate of 7% to 8% [61][63] Company Strategy and Development Direction - Chewy is focusing on expanding its Chewy Vet Care network and plans to open 8 to 10 new practices in fiscal year 2025 [9] - The company is investing in its Chewy Plus membership program and private brands, including the launch of a new fresh dog food line called Get Real [11][12] - Chewy aims to mitigate tariff-related costs and enhance customer experience through strategic pricing and inventory management [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Chewy's ability to gain market share and deliver strong growth despite macroeconomic pressures [15][22] - The company expects to maintain adjusted EBITDA margin expansion driven by improvements in gross margin [22] - Management anticipates continued growth in active customers and NESPAC, with a focus on enhancing customer engagement through programs like Autoship and Chewy Plus [63][78] Other Important Information - The company repurchased approximately 3 million shares for a total of approximately $125 million in Q2 [19] - Chewy remains debt-free with a strong cash position, allowing for continued investment in growth initiatives [20] Q&A Session Summary Question: Investments required in the back half and increasing awareness of new offerings - Management indicated that they are focusing on existing members for Chewy Plus and have not spent additional marketing dollars externally, relying on organic growth from existing customers [26] Question: SG&A deleverage and expectations for the back half - Management expects SG&A leverage to improve in the back half of the year, driven by the ramp-up of fulfillment centers and structural growth [34][39] Question: Drivers of gross margin expansion and advertising environment - Management highlighted that gross margin expansion is driven by product mix, increasing Autoship penetration, and a rational promotional environment [44][64] Question: Quality of customer cohorts and growth in Autoship - Management noted that the quality of cohorts is improving due to better retention in programs like Autoship and Chewy Plus, leading to higher NESPAC [78]

Financial Data and Key Metrics Changes - Q2 net sales grew by nearly 9% year over year to $3.1 billion, exceeding the high end of guidance range [5][17] - Gross margin reached 30.4%, expanding by nearly 80 and 90 basis points sequentially and year-over-year, respectively [6][17] - Adjusted net income for Q2 was $141.1 million, representing a 34.8% increase year over year [18] - Free cash flow for Q2 was nearly $106 million, with a robust liquidity position of approximately $1.4 billion [7][20] Business Line Data and Key Metrics Changes - Autoship customer sales reached $2.58 billion, representing 83% of Q2 net sales and a nearly 15% increase [5][6] - Hardgoods business grew over 15% in Q2, driven by structural volume growth [5] - Chewy Plus program showed strong growth, with approximately 3% of total monthly sales attributed to members [9][10] Market Data and Key Metrics Changes - Active customers increased to 20.9 million, reflecting a 4.5% year-over-year growth [6] - NESPAC (Net Effective Sales Per Active Customer) reached $591, representing a 4.6% year-over-year growth [6] - The overall industry growth is in the low to mid-single digits, while Chewy is growing at a 7% to 8% rate [61] Company Strategy and Development Direction - Chewy is focusing on expanding its Chewy Plus membership and private brands, with a new product line "Get Real" launched in August [10][12] - The company plans to open 8 to 10 new Chewy Vet Care practices in fiscal year 2025 [8] - Chewy aims to mitigate tariff-related costs and invest in growth initiatives to enhance market share [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in Chewy's ability to navigate macroeconomic pressures and continue gaining market share [15][21] - The second half of 2025 is expected to be dynamic, with plans to invest in growth while maintaining profitability [15][21] - Management anticipates continued gross margin expansion and a strong performance from the Chewy Plus program [21][22] Other Important Information - The company repurchased approximately 3 million shares for about $125 million in Q2 [19] - Chewy remains debt-free with a strong cash position, allowing for strategic investments [20] Q&A Session All Questions and Answers Question: Can you talk more about the investments required in the back half and into 2026? - Management indicated that investments will focus on enhancing customer discoverability and increasing awareness of new offerings like Chewy Plus and Get Real, primarily through existing customer engagement rather than external marketing [25][26] Question: How should we think about the leverage path into the back half? - Management expects SG&A leverage to improve in the back half of the year, driven by the ramp-up of fulfillment centers and structural growth [34][39] Question: Can you unpack the Q2 gross margin improvement and the drivers for Q3 and Q4? - Management noted that gross margin expansion is driven by product mix, increasing Autoship penetration, and a rational promotional environment, with expectations for continued growth [42][44] Question: How big do you think the fresh and frozen business can go over time? - Management estimates the total addressable market for the fresh and frozen category to grow from $3 billion to $4 billion currently to between $8 billion and $12 billion in the coming years [51][52] Question: What are your expectations regarding the advertising environment? - Management reported high competitive intensity in the advertising market but noted strong metrics in net traffic and mobile app engagement [57][62] Question: What are the competitive advantages Chewy has over retail giants? - Management emphasized Chewy's unique value proposition that combines e-commerce efficiency with personalized service, allowing for a strong position in the pet care market [67][70]