Key PointsOptions can be used to calculate the implied price move for a stock heading into a catalyst event like earnings reports, FDA decisions, economic reports and court verdicts.Being aware of where the options market expects the price to go can prepare you for the risks and potential opportunities after the catalyst occurs.At-the-money spread pricing helps gauge how much of a price swing the underlying stock will make.5 stocks we like better than ChewyStock options can be used for many purposes, from c ...

Key TakeawaysChewy shares moved lower in premarket trading Thursday after the e-tailer's pet ownership outlook overshadowed its better-than-expected quarterly results.The company cautioned that it sees the pet industry growing at a slower-than-average pace this year due to pet household formation trends, before normalizing in 2025.Chewy said it expects to deliver continued adjusted EBITDA margin expansion and gain market share this year, regardless of the industry or macroeconomic conditions.A reversal in C ...

Chewy, Inc. (NYSE:CHWY) Q4 2023 Earnings Conference Call March 20, 2024 5:00 PM ET Company Participants Jennifer Hsu - Vice President and Head of Investor Relations Sumit Singh - Chief Executive Officer and Director David Reeder - Chief Financial Officer Conference Call Participants Douglas Anmuth - JPMorgan Mark Mahaney - Evercore ISI Dylan Carden - William Blair Anna Andreeva - Needham and Company Steven Zaccone - Citigroup Nathan Feather - Morgan Stanley Alex Steiger - Goldman Sachs Rupesh Parikh - Oppen ...

As online retail subscriptions gain share from physical stores, Chewy is leveraging its Autoship auto-fill program to win customers from its more traditional competitors.The company shared in a letter to shareholders accompanying its fourth quarter and full year fiscal 2023 financial results Wednesday (March 20) that its Autoship subscription program yielded highly positive results, generating about $8.5 billion in customer sales throughout 2023.“I’m incredibly excited about the company’s opportunities, we ...

Financial Performance - Net sales for the fiscal year 2023 reached $11,147,720, a 10.2% increase from $10,119,000 in 2022[160] - Net income for 2023 was $39,580, representing a decrease of 20.7% compared to $49,899 in 2022[160] - Adjusted EBITDA for 2023 was $368,068, up 20.0% from $306,739 in 2022[160] - Free cash flow surged by 187.0% to $342,929 in 2023 from $119,467 in 2022[160] Customer Metrics - Active customers decreased by 1.6% to 20,083 in 2023 from 20,405 in 2022[160] - Net sales per active customer increased by 11.9% to $555 in 2023 from $496 in 2022[160] - Autoship customer sales grew by 14.7% to $8,493,199 in 2023 from $7,407,930 in 2022[160] Market Trends - The U.S. pet market is projected to grow at an estimated CAGR of approximately 7% from 2023 through 2027[176] - Online shopping for pet products increased from 16% in 2017 to an estimated 36% in 2023, reflecting a 28% CAGR[180] - 39% of pet product shoppers had a current pet-related subscription as of February 2023, indicating a trend towards subscription-based purchasing[182] Operational Efficiency - The distribution network enables cost-efficient shipping to over 80% of the U.S. population overnight and almost 100% within two days, optimizing asset utilization and lowering costs[184] - The technology platform is scalable, with expectations for decreasing transaction costs as sales volume grows, supported by automation and improved operational processes[185] Growth Strategies - The company aims to increase brand awareness and acquire new customers by investing free cash flow in advertising and marketing[186] - The private brands, including Frisco, American Journey, Tylee's, and Vibeful, have seen significant customer engagement, with plans for further growth in this segment[187] - Expansion into pet healthcare includes offerings like Chewy Pharmacy and telehealth services, with approximately 15,000 veterinary practices enrolled in the PracticeHub platform[188] - The CarePlus product suite was expanded in 2023 to meet diverse needs of pet parents, following the acquisition of Petabyte Technology Inc. in 2022[188] - The company is exploring broader platform opportunities to drive future growth, potentially extending offerings to pet services and direct sales to businesses[189] Customer Service and Support - Chewy operates customer service centers 24/7 and expanded its services into Canada in September 2023[190] Intellectual Property and Talent Management - The company believes its intellectual property has substantial value and has significantly contributed to its success[192] - Compensation and benefits programs are designed to attract and retain talent, including competitive salaries and unique employee benefits[194]

Financial Performance - Net sales for Q4 2023 were $2.83 billion, a 4.2% year-over-year increase[2] - Gross margin for Q4 2023 expanded by 10 basis points to 28.2%[2] - Net income for Q4 2023 was $31.9 million, with a net margin of 1.1%, an 80 basis point increase year-over-year[2] - Adjusted EBITDA for Q4 2023 was $86.5 million, a decrease of $6.2 million year-over-year, with a margin of 3.1%, contracting 30 basis points[2] - Full-year 2023 net sales were $11.15 billion, a 10.2% year-over-year increase[2] - Full-year 2023 gross margin expanded by 40 basis points to 28.4%[2] - Full-year 2023 adjusted EBITDA was $368.1 million, an increase of $61.3 million year-over-year, with a margin of 3.3%, expanding 30 basis points[2] - Net income for the 13 weeks ended January 28, 2024 was $31.886 million, compared to $6.784 million for the same period in 2023[19] - Adjusted EBITDA for the 13 weeks ended January 28, 2024 was $86.467 million, compared to $92.672 million for the same period in 2023[19] - Net sales for the 13 weeks ended January 28, 2024 were $2.825 billion, compared to $2.712 billion for the same period in 2023[19] - Net margin for the 13 weeks ended January 28, 2024 was 1.1%, compared to 0.3% for the same period in 2023[19] - Adjusted EBITDA margin for the 13 weeks ended January 28, 2024 was 3.1%, compared to 3.4% for the same period in 2023[19] - Adjusted net income for the 13 weeks ended January 28, 2024 was $80.278 million, compared to $70.312 million for the same period in 2023[24] - Adjusted basic earnings per share for the 13 weeks ended January 28, 2024 was $0.19, compared to $0.17 for the same period in 2023[24] - Adjusted diluted earnings per share for the 13 weeks ended January 28, 2024 was $0.18, compared to $0.16 for the same period in 2023[24] Operational Metrics - Chewy offers approximately 115,000 products and services through its websites and mobile applications[5] - Chewy partners with approximately 3,500 trusted brands in the pet industry[5] Strategic Outlook - CEO Sumit Singh highlighted the company's commitment to expanding margins and generating free cash flow in 2024[13] Shareholder and Compensation Metrics - Weighted-average common shares used in computing adjusted earnings per share for the 13 weeks ended January 28, 2024 was 431.6 million, compared to 424.328 million for the same period in 2023[24] - Share-based compensation expense and related taxes for the 13 weeks ended January 28, 2024 was $60.665 million, compared to $50.188 million for the same period in 2023[24]

Despite continued growth in the business, Chewy (CHWY 0.87%) stock has not rebounded with the broad market over the last year. Shares are still down 85% from their previous peak, but analysts at Needham see a buying opportunity.The firm recently maintained its buy rating for the stock with a price target of $25, which also happens to be close to the average price target for all analysts covering the stock.Why buy Chewy stock?There are a few factors weighing on the stock price. The company is struggling to g ...

In retrospect, there's no denying that Chewy (CHWY 0.87%) shares rallied too fast -- and too far -- in 2020. Oh, the move is certainly understandable. It was the middle of the pandemic, after all. People were stuck at home, cut off from other people and perhaps feeling a little lonely. Pets helped fill the void, and online retailer Chewy helped feed these pets.But as the swell of interest in pets cooled, so did interest in the stock. That's why Chewy shares are now down 85% from their early 2021 peak. The s ...

The stock market has climbed over the past year -- and confirmed its presence in bull territory recently when the S&P 500 reached a new high. Growth stocks have led these gains, as environments of expansion and optimism generally support these sorts of players. Still, some promising growth stocks have missed out on the momentum so far.One glaring example is Chewy (CHWY 3.11%), an e-commerce site for everything your pet needs -- from food and toys to health insurance. Chewy reached the key milestone of profi ...

It has been a volatile period for Chewy (CHWY 1.14%) stock, but most of the past five years have been negative for its shareholders. The pet supply giant was briefly a Wall Street favorite when the use of e-commerce soared during the early phases of the pandemic. Shares quickly reversed course once the growth hangover struck, though.Chewy stock is now down by more than 80% over the past five years after having jumped by 70% through early 2021.Yet, investing is all about the future, and the future seems brig ...