Key Takeaways CHWY delivered a 6.2% adjusted EBITDA margin in Q1, increasing 50 basis points y/y. Stronger Autoship and ads contributed to a more profitable and balanced revenue mix. Management reiterated the 2025 view and confidence in reaching the 10% adjusted EBITDA margin objective.Chewy (CHWY) reported a 6.2% adjusted EBITDA margin in the first quarter of fiscal 2025, expanding 50 basis points year over year. Adjusted EBITDA rose 18.3% to $192.7 million from $162.9 million a year ago. These results h ...

A badly received quarterly earnings report was the major news item exerting gravity on Chewy (CHWY 0.53%) stock over the past few days. As a result, according to data compiled by S&P Global Market Intelligence, the company's share price had slumped by almost 15% week-to-date as of Thursday evening.Investors didn't like the latest milk boneThat sell-off happened even though Chewy actually topped analyst estimates for revenue and profitability, albeit not by vast amounts. In its first quarter, the company man ...

Core Insights - Chewy Inc. is set to release its first-quarter fiscal 2025 earnings results on June 11, with investors contemplating whether to buy or hold the stock [1] Group 1: Company Performance and Expectations - Chewy has established a strong presence in the online pet retail market, focusing on innovation and customer loyalty, which positions the company for long-term growth [2] - The Zacks Consensus Estimate for first-quarter revenues is $3.08 billion, reflecting a 6.9% increase from the previous year, while the earnings estimate remains at 34 cents per share, indicating a 9.7% year-over-year rise [3][8] - Chewy has a trailing four-quarter earnings surprise of 19.3%, with the last quarter surpassing the Zacks Consensus Estimate by 33.3% [4] Group 2: Key Growth Drivers - The growth in Chewy's revenue is supported by its Autoship program, which encourages repeat purchases and stabilizes revenue streams [10] - Active customer growth is a positive indicator, with the Zacks Consensus Estimate suggesting an increase to 20.5 million active customers, driven by improved digital experiences and the Chewy+ Membership Program [11] - Chewy's expansion into higher-margin areas, such as its in-house ad platform and veterinary services, is enhancing customer acquisition and engagement [12] Group 3: Market Position and Valuation - Chewy's stock has increased by 22.1% over the past month, outperforming the industry average of 1.2% [13] - The company trades at a forward 12-month price-to-sales (P/S) ratio of 1.57, which is lower than the industry average of 2.00, indicating a favorable investment opportunity [16] - Chewy's valuation is higher than competitors like Central Garden & Pet Company, Petco Health and Wellness Company, and BARK, which have lower P/S ratios [17] Group 4: Investment Considerations - Chewy's investments in automation, advertising, and veterinary services reflect a commitment to long-term growth, although the lack of a clear earnings beat signal may lead to cautious investment decisions [19]

Financial Data and Key Metrics Changes - Revenue for the first quarter was reported at $113 million, reflecting a 5% increase compared to the prior year, or a 2% increase when excluding foreign exchange impacts [8][15] - Adjusted EBITDA increased by 20% to $11 million compared to $9.2 million in the previous year [22] - GAAP net income attributable to common shareholders was $4.7 million, or $0.25 per diluted share, compared to $2.3 million, or $0.12 per diluted share in the prior year [21] Business Line Data and Key Metrics Changes - In Asia Pacific, revenue grew by 10% on a local currency basis, with standout performances in Japan and Taiwan, where sales increased by 24% and 18% respectively [9][16] - European sales increased by 9% on a constant currency basis, driven by strong growth in Central Europe, which was up 16% [10][17] - North American sales declined by 4%, but there was a positive trend with the third consecutive quarter of sequential order growth [10][18] Market Data and Key Metrics Changes - Digital sales in North America increased by 19%, significantly outpacing the supplement industry's digital growth rate [11][18] - The Subscribe and Thrive Autoship program accounted for approximately 26% of total sales and about 45% of direct-to-consumer sales [11] Company Strategy and Development Direction - The company is focusing on minimizing exposure to tariffs by increasing raw ingredient inventory and enforcing pricing contracts with suppliers [6][7] - A strong emphasis on sustainability initiatives was highlighted, with goals to reduce carbon emissions by 50% and achieve zero waste certification [12][13] - The company is optimistic about growth opportunities in North America, despite current challenges, and plans to leverage digital transformation and strategic initiatives [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for products and a positive outlook for 2025, despite macroeconomic uncertainties [6][14] - The company is taking a conservative stance in its guidance, anticipating potential headwinds from tariffs and economic instability [24][35] Other Important Information - The company repurchased 38,000 shares for approximately $500,000 during the quarter, with an increased share repurchase authority of $25 million [23] - Inventory levels increased to $64.9 million, reflecting a strategic decision to prepare for potential tariff-related costs and delays [22] Q&A Session Summary Question: How did Q1 come in relative to internal expectations? - The company was slightly ahead of internal expectations for the quarter [30] Question: Can you clarify guidance for the balance of the year? - The midpoint of guidance assumes continued macroeconomic instability and potential tariff impacts [35] Question: What are the expectations for the new digital toolkit launch? - The toolkit is on track for launch in the second half of 2025, with no anticipated order disruptions [40][41] Question: What are the drivers for continued growth in Europe and Asia? - Strong fundamentals in sales and marketing are expected to drive growth, with significant market opportunities remaining [48] Question: How is the company addressing the North American market challenges? - Focus on building fundamentals, new leadership, and the introduction of a new toolkit are key strategies [55]

U.S. consumer confidence, a key determinant of the economy’s health, dipped for the fifth consecutive month in April. The latest data from the Conference Board showed that the Consumer Confidence Index declined to 86. This marks a 7.9-point decrease from the previous month and falls short of market expectations. It’s the weakest level recorded in almost five years, underscoring the growing unease among consumers as economic pressures build. This sharp fall highlights rising consumer apprehension about the e ...

Chewy (CHWY) Q4 2025 Earnings Call March 26, 2025 02:57 PM ET Company Participants David Reeder - Chief Financial OfficerSumit Singh - CEOEric Sheridan - Managing DirectorSteven Zaccone - Director, Equity Research, Hardlines Retail Conference Call Participants David Bellinger - Director & Senior AnalystDouglas Anmuth - Managing Director & Internet AnalystCurtis Nagle - Director - Senior US SMID Cap Internet AnalystTrevor Young - AnalystDylan Carden - Research Analyst Operator Hello, everyone, and welcome to ...