Chewy ( CHWY ) was among the pandemic winners. Since early 2021, however, the stock has never recovered and now trades in the low $30s, down almost 75% from its peak close to $120. In a market where fears of a bubble appearI’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and h ...

Chewy ( CHWY ) was among the pandemic winners. Since early 2021, however, the stock has never recovered and now trades in the low $30s, down almost 75% from its peak close to $120. In a market where fears of a bubble appearI’m a long-term investor focused on U.S. and European equities, with a dual emphasis on undervalued growth stocks and high-quality dividend growers. Through years of experience, I’ve learned that sustained profitability—evident in strong margins, stable and expanding free cash flow, and h ...

Chewy ( CHWY ) is an online pet store specializing in a wide range of products, from toys to medicine for animals. Gradually, CHWY has become a dominant force in the industry, reaching roughly $14 billion in market capitalization .Dear Reader,I am a Senior Derivatives Expert with over 10 years of experience in the field of Asset Management, specializing in equity analysis and research, macroeconomics, and risk-managed portfolio construction. My professional background covers both institutional and private c ...

Company Overview - Chewy (CHWY) is an online pet store that specializes in a wide range of products, including toys and medicine for animals [1] - The company has become a dominant force in the industry, achieving a market capitalization of approximately $14 billion [1]

Core Insights - Chewy (CHWY), the online pet food and supplies retailer, experienced significant growth during the pandemic but has since returned to more normalized levels of performance [1] Company Overview - Chewy saw a massive jump in sales during the pandemic and stay-at-home period, indicating a surge in demand for pet products [1] - The stock is currently positioned interestingly, suggesting potential for future analysis and investment opportunities [1] Analyst Background - The analyst has over 10 years of experience researching companies across various sectors, including commodities and technology [1] - The analyst has researched over 1000 companies, providing a broad perspective on market trends and investment opportunities [1] - The focus has shifted to a value investing-oriented platform, with extensive research conducted on numerous companies [1]

Core Insights - Chewy (CHWY) is expected to report quarterly earnings of $0.30 per share, a 50% increase year-over-year, with revenues projected at $3.09 billion, reflecting a 7.5% year-over-year growth [1] Earnings Estimates - The consensus EPS estimate has been revised upward by 9.7% in the last 30 days, indicating a reassessment by analysts [2] - Revisions to earnings estimates are crucial for predicting investor actions, as empirical research shows a strong correlation between earnings estimate trends and short-term stock performance [3] Key Metrics Forecast - Analysts forecast 'Net Sales- Consumables' to reach $2.16 billion, a 5.9% increase from the previous year [4] - 'Net Sales- Other' is estimated to be $609.23 million, showing a year-over-year change of 13.3% [5] - 'Net Sales- Hardgoods' is expected to reach $335.80 million, indicating a 13.2% increase from the prior year [5] - The number of 'Active customers' is projected to be 21,062, up from 20,160 in the previous year [5] - The estimated 'Net sales per active customer' is $596.22, compared to $567.00 a year ago [6] Stock Performance - Over the past month, Chewy shares have returned 1.4%, slightly outperforming the Zacks S&P 500 composite's 1.3% change [6] - Chewy currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6]

Core Insights - Chewy, Inc.'s expansion into pet health services through the Chewy Vet Care (CVC) network is a strategic initiative aimed at high-value customer acquisition and ecosystem benefits [1][3] - CVC clinics are exceeding expectations in demand generation and value creation, with Vet Care customers showing the highest and fastest Net Sales Per Active Customer (NSPAC) growth [1][7] - The company plans to open 8 to 10 new Vet Care practices in fiscal 2025, aiming to reach a total of 20 locations, which is expected to enhance profitability and customer loyalty [3][7] Customer Dynamics - CVC customers are increasingly gravitating towards high-value verticals such as premium consumables and pharmacy offerings, which supports the company's Autoship-driven economics and higher gross profit per customer [2] - The strategic focus is on creating a comprehensive pet care ecosystem that connects food, supplies, and health services, fostering deeper customer relationships and ongoing engagement [2] Financial Performance - Chewy's shares have decreased by 2.1% year-to-date, contrasting with an 8.4% increase in the industry [4] - The company trades at a forward price-to-earnings ratio of 47.96, significantly higher than the industry average of 24.17 [5] - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 22.1% for fiscal 2026 and 20.7% for fiscal 2027 [13]

Core Insights - Chewy, Inc.'s active customer base is showing signs of reacceleration, ending Q2 fiscal 2025 with 20.9 million active customers, a 4.5% year-over-year increase, and adding 150 thousand customers sequentially [1][5] Customer Growth - The growth in active customers is primarily driven by the Autoship subscriptions and Chewy+ program, with Autoship sales rising nearly 15% to $2.58 billion, accounting for 83% of total net sales in Q2 [2][9] - Chewy's Net Sales Per Active Customer (NSPAC) increased by 4.6% year-over-year to $591, indicating a rise in customer spending [3][9] Customer Engagement - Chewy+ members exhibit stronger Autoship participation and higher mobile app engagement compared to non-members, contributing to robust NSPAC growth for Chewy+ customers [3][5] - Management noted improvements in gross subscriptions added to Autoships and better retention rates for repeat orders, suggesting enhanced customer loyalty and engagement [4][9] Financial Performance - Chewy's second-quarter results reflect a re-acceleration in active customers, with high Autoship adoption and increased NSPAC indicating a solid foundation for future growth [5] - The Zacks Consensus Estimate for Chewy's fiscal 2026 and 2027 earnings implies year-over-year growth of 22.1% and 20.7%, respectively [11]

Core Insights - Chewy, Inc.'s Autoship program has become a crucial component of its business model, generating $2.58 billion in sales, which is a 15% year-over-year increase and represents 83% of total net sales [1][9]. Sales Performance - The Autoship program demonstrated strong performance in high-value categories like consumables and health, indicating a solid commitment from core customers [2]. - Autoship's sales growth of 15% outpaced the overall net sales growth of 8.6%, highlighting its effectiveness in driving revenue [2]. Customer Engagement - Chewy+ members exhibit higher participation in Autoship and greater mobile app engagement compared to non-members, contributing to a 4.6% year-over-year increase in Net Sales Per Active Customer (NSPAC) to $591 [4][9]. - The number of active customers rose by 4.5% to 20.9 million during the quarter [9]. Financial Metrics - Chewy's gross margin improved to 30.4%, reflecting an increase of nearly 80 basis points sequentially and 90 basis points year over year, driven by more predictable volume and higher frequency from the Autoship program [3][9]. Future Outlook - The company plans to continue investing in expanding its Autoship and Chewy Plus programs to capture a larger market share [5]. Valuation - Chewy's shares have increased by 2.1% year to date, while the industry has risen by 6.1%, with a forward price-to-earnings ratio of 48.3, significantly higher than the industry average of 23.3 [6][8]. Earnings Estimates - The Zacks Consensus Estimate for Chewy's fiscal 2026 and 2027 earnings suggests a year-over-year increase of 22.1% and 20.7%, respectively, with a trailing four-quarter earnings surprise of 5.8% on average [11].

Financial Results Announcement - Chewy, Inc. will report its fiscal third quarter 2025 financial results before the market opens on December 10, 2025 [1] - A conference call and webcast will be hosted by management at 8:00 am ET to discuss the financial results [1][3] Access Information - Participants can register for the conference call via a provided link to receive dial-in details and a unique PIN [2] - A live audio webcast will be available on the company's investor relations website, with a replay accessible for at least 90 days following the event [3] Company Overview - Chewy aims to be the most trusted and convenient destination for pet parents, offering a broad selection of high-quality pet products and services [4] - The company partners with approximately 3,200 trusted brands and offers around 130,000 products and services through its platforms [4]