Chewy, Inc. (NYSE:CHWY) Analyst Sentiment and Market Position

Chewy (NYSE:CHWY) posted stronger-than-expected first-quarter revenue but saw its stock fall more than 10% intra-day today after earnings fell short due to rising operating expenses.

For the quarter, net sales rose 8.3% year-over-year to $3.12 billion, narrowly topping consensus estimates of $3.08 billion. However, net income declined to $62.4 million, down from $66.9 million a year earlier and below analyst expectations of $70.9 million.

The online pet retailer faced a notable increase in operating costs, which rose to $846.9 million from $789.4 million, pressuring overall profitability despite steady top-line growth. The results reflect a business still expanding, but grappling with elevated expense levels that are eroding bottom-line performance.

Chewy Inc. (NYSE:CHWY) is a leading online platform for pet owners, offering a comprehensive range of pet products and services. On June 11, 2025, Chewy disclosed its financial performance, revealing a slight beat in EPS and an overall strong revenue growth.

Chewy's quarterly earnings significantly improved, showcasing the company's ability to exceed expectations in terms of revenue. However, the company's shares experienced a downturn in premarket trading, reflecting investor reactions to the first-quarter profit shortfall.

Chewy's financial health is highlighted by its net sales growth and a series of key financial metrics. The company reported a price-to-earnings (P/E) ratio of approximately 41.81, indicating high investor expectations for future growth. Additionally, Chewy's debt-to-equity ratio of about 1.92 suggests a considerable level of financial leverage, while its current ratio of approximately 0.75 points to potential short-term liquidity challenges.

• Chewy Inc. (NYSE:CHWY) is set to release its quarterly earnings with an estimated EPS of $0.34 and projected revenue of $3.08 billion.
• The company's stock has more than doubled over the past year, showcasing significant growth despite skepticism from analysts regarding its high P/E ratio of 48.30.
• Chewy's financial health shows a mixed picture, with a reasonable price-to-sales ratio of 1.63 but potential liquidity concerns indicated by a current ratio of 0.75.

Chewy Inc. (NYSE:CHWY) is a leading online retailer specializing in pet supplies, offering a wide range of products from food to pet insurance. The company has been expanding into new areas like personalized pet products and telehealth services. Chewy's market capitalization stands at $19 billion, reflecting its significant presence in the pet industry.

On June 11, 2025, Chewy is set to release its quarterly earnings, with Wall Street analysts estimating an EPS of $0.34 and projected revenue of $3.08 billion. This represents a 7% increase from the previous year, driven by a growing customer base and the success of its Autoship subscription service. The service allows customers to schedule regular deliveries, contributing to Chewy's revenue growth.

Chewy's stock has more than doubled over the past year, rising from $22, although it remains slightly below its value from five years ago. This growth contrasts with Petco Health & Wellness, a competitor whose stock has plummeted 23% recently and lost nearly 85% over the past year. Chewy's strong performance in the fiscal fourth quarter, with a 15% increase in net sales, has set high expectations for the upcoming earnings report.

Despite the positive trajectory, Chewy's stock is trading lower as it approaches the earnings announcement. Analysts express skepticism about the sustainability of its growth, given the company's high price-to-earnings (P/E) ratio of 48.30. This ratio indicates that investors are paying $48.30 for every dollar of earnings, reflecting high expectations for future growth.

Chewy's financial metrics reveal a mixed picture. The company's price-to-sales ratio is 1.63, and its enterprise value to sales ratio is 1.62, suggesting a reasonable valuation relative to sales. However, the debt-to-equity ratio of 1.92 indicates a higher level of debt compared to equity, which could pose risks. Additionally, the current ratio of 0.75 suggests that Chewy's current liabilities exceed its current assets, highlighting potential liquidity concerns.

Chewy (NYSE:CHWY) reported fourth-quarter results that outpaced expectations, driven by a strong rise in customer activity and robust top-line growth.

The company posted adjusted EBITDA of $124.5 million, beating the $118.4 million consensus estimate, as demand picked up across its platform. Net sales rose 14.9% year-over-year to $3.25 billion, supported by an increase in active customers to 20.5 million—both figures exceeding forecasts.

Management highlighted that Chewy is entering fiscal 2025 with solid momentum, pointing to customer growth as a key catalyst for continued performance.

Looking ahead, Chewy is guiding first-quarter net sales growth of 6% to 7%, or $3.06 billion to $3.09 billion, slightly above Wall Street expectations of $3.04 billion. Projected earnings per share between $0.30 and $0.35 puts the midpoint roughly in line with the $0.33 consensus.

For the full year, the company expects net sales between $12.30 billion and $12.45 billion, marking a 6%-7% increase, compared to market projections of $12.42 billion. Core income margins are forecast to range from 5.4% to 5.7%, indicating continued efficiency gains.

Chewy (NYSE:CHWY) reported fourth-quarter results that outpaced expectations, driven by a strong rise in customer activity and robust top-line growth.

The company posted adjusted EBITDA of $124.5 million, beating the $118.4 million consensus estimate, as demand picked up across its platform. Net sales rose 14.9% year-over-year to $3.25 billion, supported by an increase in active customers to 20.5 million—both figures exceeding forecasts.

Management highlighted that Chewy is entering fiscal 2025 with solid momentum, pointing to customer growth as a key catalyst for continued performance.

Looking ahead, Chewy is guiding first-quarter net sales growth of 6% to 7%, or $3.06 billion to $3.09 billion, slightly above Wall Street expectations of $3.04 billion. Projected earnings per share between $0.30 and $0.35 puts the midpoint roughly in line with the $0.33 consensus.

For the full year, the company expects net sales between $12.30 billion and $12.45 billion, marking a 6%-7% increase, compared to market projections of $12.42 billion. Core income margins are forecast to range from 5.4% to 5.7%, indicating continued efficiency gains.

• Chewy Inc. (NYSE:CHWY) is set to release its quarterly earnings with an estimated EPS of $0.21 and projected revenue of $3.2 billion.
• The company faces margin pressure but benefits from a steady stream of recurring revenue through its auto-ship service.
• Financial metrics such as a P/E ratio of 34.87, and a debt-to-equity ratio of 2.29 highlight valuation and financial leverage concerns.

Chewy Inc. (NYSE:CHWY) is a prominent online retailer specializing in pet products. The company is known for its extensive range of pet supplies, including food, toys, and healthcare products. Chewy's auto-ship service is a key feature, providing customers with a convenient way to receive regular deliveries. The company competes with other major players in the pet retail industry, such as Petco and Amazon.

On March 26, 2025, Chewy is set to release its quarterly earnings, with Wall Street analysts estimating an EPS of $0.21 and projected revenue of approximately $3.2 billion. This earnings report is crucial as it could influence investor sentiment. The stock's movement will largely depend on whether Chewy meets or exceeds these expectations, potentially impacting its near-term stock price.

Chewy faces ongoing margin pressure, which remains a significant concern for investors. Despite this, the company's auto-ship service continues to provide a steady stream of recurring revenue. However, there has been a slowdown in the growth of active customers, reflecting post-pandemic churn. This decline is being offset by higher net sales per customer, which could positively impact the company's bottom line.

Chewy's financial metrics provide insight into its valuation and performance. The company's P/E ratio is approximately 34.87, indicating the market's valuation of its earnings. The price-to-sales and enterprise value to sales ratios both stand at about 1.21, suggesting how much investors are willing to pay per dollar of sales. These figures reflect the company's total valuation relative to its sales.

Chewy's enterprise value to operating cash flow ratio is approximately 28.53, offering insight into its cash flow generation relative to its valuation. The earnings yield is about 2.87%, providing a perspective on the return on investment from earnings. However, the debt-to-equity ratio of approximately 2.29 indicates significant financial leverage, and the current ratio of around 0.74 may suggest potential liquidity challenges in covering short-term liabilities.