Chewy's Active Customers Growth First Time Since Q1 FY23 Is Encouraging: JP Morgan Analyst

Core Insights - Chewy Inc. reported second-quarter 2024 results that exceeded expectations, with sales of $2.86 billion, reflecting a year-over-year increase of 2.6% [1] - The company reaffirmed its annual guidance, with adjusted EPS of $0.24, significantly higher than the consensus estimate of $0.02 and up from $0.15 a year ago [1] Customer Engagement - Unique customers placing orders through the Chewy app increased by approximately 13% year-over-year, while overall mobile app orders rose by about 15% [2] - The CEO noted improvements in both units per order and customer retention linked to app usage [2] Active Customer Growth - Chewy ended the second quarter with around 20 million active customers, marking a modest sequential growth in net ads for the first time since Q1 2023 [3] - JP Morgan analysts expressed optimism regarding the return to growth in active customers, highlighting potential positive trends in the industry [3] Market Reaction - JP Morgan maintained an Overweight rating on Chewy stock, which saw a price increase of 14.5%, reaching $29.60 [4]