Pet e-tailer Chewy Inc (NYSE:CHWY) reported a first-quarter earnings miss before the open, overshadowing its revenue beat. The company issued a lackluster full-year outlook, too, despite recent customer growth. At last check, CHWY was down 11.3% to trade at $40.63. Shares are now on track for their third-straight loss, as well as their worst day since August 2023. The equity is pulling back from its June 6, two-year high of $48.62, but support from the 40-day moving average could contain today's losses. For ...

Core Insights - Chewy reported $1.52 billion in revenue for the quarter ended April 2025, reflecting a year-over-year decline of 47.1% [1] - The EPS for the same period was $0.95, compared to $0.31 a year ago, indicating significant improvement [1] - The reported revenue exceeded the Zacks Consensus Estimate of $1.5 billion, resulting in a surprise of +1.29% [1] - The company delivered an EPS surprise of +14.46%, with the consensus EPS estimate being $0.83 [1] Financial Performance Metrics - Active Customers reached 20,756, surpassing the eight-analyst average estimate of 20,566 [4] - Net sales per active customer were $583, slightly below the $585.93 average estimate based on seven analysts [4] - Net Sales in Consumables amounted to $2.18 billion, exceeding the three-analyst average estimate of $2.16 billion [4] - Net Sales in Other categories were $595.90 million, compared to the $597.47 million average estimate based on three analysts [4] - Net Sales in Hardgoods reached $342.20 million, above the $323.18 million average estimate based on three analysts [4] Stock Performance - Chewy's shares have returned +16% over the past month, outperforming the Zacks S&P 500 composite's +6.9% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Chewy (CHWY) Q1 2026 Earnings Call June 11, 2025 08:00 AM ET Speaker0 Good morning, everyone, and a warm welcome to Chewy's First Quarter twenty twenty five Earnings Call. My name is Emily, and I'll be coordinating your call today. After the presentation, you'll have the opportunity to ask any questions. I will now hand over to our host, Natalie Nowak, Director of Investor Relations to begin. Natalie, please go ahead. Speaker1 Thank you for joining us on the call today to discuss our first quarter results f ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - The "618" shopping festival has seen a significant increase in consumer interest in food and beverage products, particularly in health-oriented categories, driven by various promotional initiatives from e-commerce platforms [1][2][4] Consumer Trends - 42.6% of consumers purchased food products, while 40.2% bought beverages during the "618" event, indicating a strong focus on these categories [2][3] - Nearly 40% of consumers view food and beverage products as tools for health management, with 56.6% using them for emotional regulation and 50.1% for energy replenishment [2][4] Health-Oriented Consumption - Health has become a key trend in food and beverage consumption, with 43.8% of consumers expressing greater concern for health and wellness [4][5] - 34.5% of consumers have increased their budget for health-oriented food products, while 48.1% are paying more attention to different types of healthy foods [4][5] Product Preferences - Consumers are increasingly favoring low-calorie, low-sugar, and low-fat products, with 52.5% preferring low-sugar and low-fat options [5][12] - Functional health foods and high-nutrition products are gaining traction, with 45.2% and 41.9% of consumers respectively choosing these options [5][12] E-commerce Dynamics - 66.3% of consumers trust the quality of health food products on JD Supermarket, and 85.4% are likely to purchase health-related items from this platform [7][14] - JD Supermarket's product variety and pricing advantages are recognized by 70.3% of consumers, positioning it as a leading choice for health food purchases [7][14] Weight Management Initiatives - The "Weight Management Year" initiative has led to 81.7% of consumers engaging in weight management activities, with 68.4% focusing on dietary adjustments [11][12] - Consumers are cautious about weight loss products, with 40.1% viewing them as supplementary tools rather than primary solutions [14][15] Market Outlook - The demand for health-oriented food and beverage products is driving a robust recovery in the consumer market, supported by e-commerce supply [14][15]

Core Points - PetMed Express, Inc. has announced a delay in the release of its fourth quarter and fiscal year 2025 earnings due to the need for additional time to complete the year-end audit process [1] - The company expects to issue the earnings release and hold the related conference call by June 16, 2025, at the latest [2] Company Overview - Founded in 1996, PetMed Express, Inc. is a leader in the digital pet pharmacy industry, operating as a national online retailer through PetMeds.com and PetCareRx.com [3] - The company provides a wide range of medications, food products, and essential supplies for pets, leveraging partnerships with veterinary professionals and telehealth services [3]

Core Insights - Stitch Fix, Inc. (SFIX) is anticipated to report a year-over-year decline in revenues for Q3 fiscal 2025, with the Zacks Consensus Estimate at $315.3 million, reflecting a 2.3% decrease from the previous year [1] - The company is expected to report a narrower loss per share of 12 cents, compared to a loss of 15 cents in the same quarter last year [2] - The company has experienced a trailing four-quarter earnings surprise of 48.9% on average, with a significant beat of 54.6% in the last reported quarter [2] Performance Influencers - A challenging macroeconomic environment, including shifts in customer demand and tariff-related issues, is likely to negatively impact Stitch Fix's quarterly performance [3] - The company faces difficulties in customer acquisition and retention, with a projected decline of 10.8% in active clients year-over-year for Q3 [4] - Competition from major retailers and economic pressures are additional challenges to the company's growth [3] Financial Projections - Management previously projected revenues between $311 million and $316 million, indicating a year-over-year decline of 3.6% to 2.1% [4] - Adjusted EBITDA is expected to be between $7 million and $10 million, with a margin of 2.3% to 3.2% [4] - The gross margin is anticipated to increase by 90 basis points year-over-year to 44.5%, benefiting from improved product margins [6] Strategic Initiatives - Stitch Fix is enhancing customer experiences through AI-driven personalization and reimagining product assortments to align with evolving client preferences [5] - The company's Freestyle drive is providing a distinct shopping experience, which is seen as a positive development [5] - Management is focused on cost efficiencies, which are likely to contribute to improved profitability [6]

Core Insights - Companies with favorable efficiency levels are more likely to attract investors due to their expected impressive returns and positive correlation with price performance [1] - The efficiency ratio serves as an indicator of a company's financial health, assessing how effectively it utilizes its assets and liabilities [1] Efficiency Ratios to Consider - Receivables Turnover measures a company's ability to extend credit and collect debts, with a high ratio indicating effective collection practices [2] - Asset Utilization reflects a company's capability to convert assets into output, with higher values suggesting greater efficiency [3] - Inventory Turnover assesses a company's ability to manage inventory relative to its cost of goods sold, where a high ratio indicates efficient inventory management [4] - Operating Margin evaluates a company's control over operating expenses, with higher values indicating better expense management compared to peers [5] Screening Criteria - The screening process identified stocks with Inventory Turnover, Receivables Turnover, Asset Utilization, and Operating Margin greater than industry averages, narrowing down over 7,906 stocks to seven candidates [7] - A favorable Zacks Rank of 1 (Strong Buy) was also included in the screening criteria to enhance profitability [6] Selected Stocks - Carvana (CVNA) is a leading e-commerce platform for buying and selling used cars, with an average four-quarter positive earnings surprise of 137.6% [7] - Natural Gas Services Group (NGS) manufactures and services natural gas compressors, achieving an average four-quarter positive earnings surprise of 34.8% [9] - Equity Bancshares (EQBK) operates as a bank holding company providing financial services, with an average four-quarter positive earnings surprise of 17.3% [10]

Core Viewpoint - JPMorgan analyst Doug Anmuth maintains an Overweight rating on Chewy, Inc. with a price target of $36, anticipating positive financial results for Q1 FY25 and an upward revision of FY25 outlook [1][2] Financial Performance Expectations - Chewy is expected to report Q1 net sales guidance between $3.06 billion and $3.09 billion, with a full-year net sales outlook of $12.30 billion to $12.45 billion [1] - Adjusted EBITDA margins are projected to be between 5.4% and 5.7% for FY25, with a year-over-year increase of 59 basis points [5] Revenue Growth and Customer Dynamics - Anmuth forecasts net customer additions of 104,000 sequentially in Q1 FY25 and 421,000 year-over-year for the full year [3] - Over 80% of Chewy's sales come from Autoship customers, providing strong revenue visibility and unit economics [3] Profitability and Revenue Diversification - Chewy's profitability is supported by advertising, product mix, automation, scale, and cost control, with projected free cash flow of $524 million, reflecting a 16% year-over-year increase [5] - The company is diversifying revenue through high-margin segments such as pharmacy, which has reached $1 billion on a trailing twelve-month basis, and international expansion [2] Market Trends and Traffic Insights - Chewy's web traffic increased by 4% year-over-year in Q1, with signs of improvement noted in May, although this is a decrease from 13% growth in the previous quarter [4] - Anmuth estimates a 6% year-over-year net sales growth for Q1 and 3% for FY25, which he considers conservative [4]

Core Insights - Amazon's retail business is maintaining a flat hiring budget for 2024, focusing on operating expenses rather than headcount targets [1][2][5] - The changes apply only to corporate employees in the retail division, excluding warehouse and Amazon Web Services staff [3] - CEO Andy Jassy's strategy emphasizes efficiency and profit margins, with a reported record profit of $59 billion in 2024, nearly double that of 2023 [6][5] Hiring Strategy - The hiring budget will be scrutinized, requiring strong justification for any increases, shifting focus from headcount to operating expenses [2][7] - This approach allows for tighter financial control and encourages managers to be more flexible with compensation expenses [7][12] - Managers can hire high-cost talent without the pressure of headcount limits, potentially leading to leaner teams [12][13] Cost-Cutting Measures - Amazon has been on a cost-cutting spree, reducing its workforce from a peak of 1.6 million to 1.55 million, with at least 27,000 job cuts since late 2022 [11] - The retail division is expected to continue cost reductions into 2025 to support investments in new business ventures [14] - New financial reporting tools have been implemented to track headcount and operating expenses more effectively [10]