Chewy(US:CHWY) Benzinga·2025-09-09 15:15Core Viewpoint - Chewy Inc is expected to report strong second-quarter earnings, with analysts focusing on growth in recurring revenue and subscription services, particularly through its Autoship program [1][5]. Earnings Estimates - Analysts predict Chewy will report Q2 revenue of $3.08 billion, an increase from $2.86 billion [1]. - Expected earnings per share (EPS) for Q2 is 14 cents, down from 24 cents a year ago, but the company has consistently beaten EPS estimates for over 10 quarters [2]. Analyst Insights - JPMorgan analyst Doug Anmuth considers Chewy a defensive stock, with 85% of net sales coming from non-discretionary goods [3]. - Approximately 80% of Chewy's revenue is derived from Autoship, which is a significant strength for the company [3]. - Anmuth maintains an Overweight rating with a price target of $47, citing stable industry trends and product improvements [4]. Customer Growth and Market Position - Chewy is expected to add 126,000 net new customers in Q2 and 656,000 for the fiscal year [5]. - The online pet category is still growing, with Chewy holding about 33% market share and 38% of sales being online in fiscal 2024 [4]. Key Performance Indicators - Autoship sales increased by 14.8% year-over-year in Q1 to $2.56 billion [6]. - Net sales per active customer rose by 3.7% year-over-year to $583 in Q1 [6]. - Chewy's initial guidance for fiscal 2025 sales is between $12.30 billion and $12.45 billion [7]. Stock Performance - Chewy shares were trading at $41.59, with a year-to-date increase of 22.8% in 2025 [7].