Core Insights - Chewy (CHWY) reported a 6.2% adjusted EBITDA margin in Q1 of fiscal 2025, an increase of 50 basis points year over year, with adjusted EBITDA rising 18.3% to $192.7 million from $162.9 million a year ago, indicating disciplined execution and progress toward long-term profitability targets [1][9] Financial Performance - The improvement in margins was driven by a focus on high-margin, recurring revenue streams, particularly the Autoship program, and the expansion of the sponsored ads business, which is the largest contributor to margin gains [2] - Operational discipline was evident as SG&A was maintained at 18.5% of net sales, reflecting tight cost control, while adjusted earnings per share increased 12.9% year over year to 35 cents, highlighting consistent bottom-line growth alongside margin expansion [3] Future Outlook - Management reaffirmed its 2025 adjusted EBITDA margin outlook of 5.4-5.7%, with the mid-point implying a 75-basis-point improvement from 2024, expecting approximately 60% of this expansion to come from gross margin gains [4] - Chewy aims to convert about 80% of adjusted EBITDA into free cash flow for 2025, with confidence in achieving a long-term adjusted EBITDA margin goal of 10% [5] Industry Comparison - Central Garden & Pet (CENT) reported a resilient margin performance in Q2 of fiscal 2025 despite a 7% revenue drop, with gross margin expanding by 180 basis points to 32.8% and adjusted earnings per share rising to $1.04 [6] - Petco Health and Wellness Company, Inc. (WOOF) focused on restoring profitability in Q1 of fiscal 2025, achieving a gross margin expansion of 30 basis points to 38.2% and an adjusted EBITDA margin improvement of 105 basis points to 6% [7] Stock Performance and Valuation - Chewy's shares have gained 23.3% year to date, outperforming the industry's growth of 7.4% [8] - The Zacks Consensus Estimate for Chewy's fiscal 2025 earnings implies year-over-year growth of 23.1%, with upward revisions in estimates for fiscal 2025 and 2026 [10] - Chewy trades at a forward price-to-sales ratio of 1.33X, below the industry's average of 2.02X, with a Value Score of B [13]

Chewy, Inc. (CHWY -11.99%) reported its Q1 FY2025 earnings on June 11th, delivering net sales of $3.12 billion (+8.3% year-over-year), adjusted EBITDA of $192.7 million (6.2% adjusted EBITDA margin), and 20.8 million active customers (+3.8% year-over-year). The company exceeded internal forecasts on both growth and profitability, continued disciplined share repurchases, and announced strong incremental progress across core initiatives including AutoShip, Chewy Plus, advertising, and veterinary clinic expans ...

Chewy (CHWY) Q1 2026 Earnings Call June 11, 2025 08:00 AM ET Company Participants Natalie Nowak - Director - IRSumit Singh - CEODavid Reeder - CFOEric Sheridan - Managing DirectorMark Mahaney - Senior Managing DirectorNathan Feather - Equity Research AssociateShweta Khajuria - Managing DirectorSteven Zaccone - Director, Equity Research, Hardlines Retail Conference Call Participants Curtis Nagle - Director - Senior US SMID Cap Internet AnalystDouglas Anmuth - Managing Director & Internet AnalystRupesh Parikh ...

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 ...

Chewy (CHWY) FY Conference May 14, 2025 10:00 AM ET Speaker0 All right. We are going to go ahead and get started. I'm Doug Anmuth, JPMorgan's Internet analyst. We're pleased to have with us Chewy's CFO, David Reeder. Chewy is the largest pure play online pet retailer in The U. S. With more than 20,000,000 active customers. We estimate more than $1,200,000,000 in net sales in fiscal 'twenty five. More than 80% of revenue is generated by subscription based auto ship customers and about 85% comes from nondiscr ...