Chewy Inc. (NYSE: CHWY) Earnings Report Analysis

Core Insights - Chewy Inc. reported an EPS of $0.14, which was below the expected $0.33, leading to a negative market reaction despite exceeding revenue expectations of $3.1 billion compared to the estimated $3.08 billion [1][2][6] Financial Performance - Chewy's net sales increased by 8.6% year-over-year for the second quarter of fiscal year 2025 [3] - The company's gross margin improved by 90 basis points to 30.4% [3] - Chewy reported a net income of $62 million, which included share-based compensation expenses and related taxes of $79.1 million [3] Valuation Metrics - Chewy has a P/E ratio of approximately 44.86, indicating investor willingness to pay for earnings [4][6] - The price-to-sales ratio is about 1.44, and the enterprise value to sales ratio is roughly 1.43 [4] Financial Health - The company has a debt-to-equity ratio of about 1.33, reflecting its financial leverage [5] - Chewy's current ratio is approximately 0.80, suggesting its ability to cover short-term liabilities with short-term assets [5]