Chewy, Inc. reported in-line second-quarter earnings and a slight revenue beat, but shares tumbled more than 7% as the online pet retailer’s report disappointed investors who were expecting more.
The company posted adjusted earnings per share of $0.33 for the second quarter of fiscal 2025, matching analyst estimates. Revenue came in at $3.1 billion, slightly above the consensus estimate of $3.08 billion and up 8.6% YoY.
Investors reacted negatively to the earnings release as analysts had been looking for a beat and raise.
Chewy’s gross margin improved to 30.4%, an increase of 90 basis points YoY, while adjusted EBITDA rose to $183.3 million, up $38.4 million from the same period last year. Adjusted EBITDA margin expanded to 5.9%, an 80 basis point improvement YoY.
"Q2 net sales exceeded the high end of our guidance range, growing nearly 9% year over year to $3.1 billion, with Autoship customer net sales increasing by 15% and representing 83% of total net sales for the quarter," said Sumit Singh, CEO of Chewy.
For the third quarter, Chewy expects net sales between $3.07 billion and $3.10 billion, representing approximately 7% to 8% YoY growth. The company maintained its full-year guidance of $12.5 billion to $12.6 billion in net sales and adjusted EBITDA margin of 5.4% to 5.7%.
The company reported that its active customer base grew 4.5% YoY to nearly 21 million customers, with net sales per active customer (NSPAC) also increasing 4.5% to $591, demonstrating the company’s ability to both attract new customers and increase spending from existing ones.
Source :
https://www.investing.com/news/earnings/chewy-shares-tumble-as-q2-results-fail-to-impress-4233175
