{"id":5913,"date":"2025-06-11T13:00:53","date_gmt":"2025-06-11T13:00:53","guid":{"rendered":"https:\/\/blog.mukundmohan.online\/?p=5913"},"modified":"2025-06-13T12:33:05","modified_gmt":"2025-06-13T12:33:05","slug":"chewy-chwy-the-pet-store-deep-dive-and-2025-outlook","status":"publish","type":"post","link":"https:\/\/blog.mukundmohan.online\/index.php\/2025\/06\/11\/chewy-chwy-the-pet-store-deep-dive-and-2025-outlook\/","title":{"rendered":"Chewy $CHWY the pet store deep dive and 2025 outlook"},"content":{"rendered":"\n

\ud83d\udc36 Company Snapshot<\/h2>\n\n\n\n

Chewy is a top U.S. online pet retailer, founded in 2011 and headquartered in Plantation, Florida. It offers pet food, supplies, prescriptions, veterinary services, and advertising, generating approximately\u00a0$11.9\u202fbillion in revenue in fiscal 2024<\/strong>, with ~6\u20137% YoY growth. Its main competitors include Petco, Central Garden & Pet (Resilio), and Bark, Inc.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n
\n\n\n\n

1\ufe0f\u20e3 Q1 FY2026 Revenue & Earnings<\/h2>\n\n\n\n
    \n
  • Net sales<\/strong>:\u00a0$3.12\u202fbillion<\/strong>, up\u00a08.3% YoY<\/strong>, beating expectations (~$3.08\u202fbillion)<\/li>\n\n\n\n
  • Adjusted EPS<\/strong>:\u00a0$0.35<\/strong>, versus $0.31 a year ago and above the $0.33 FactSet consensus<\/li>\n\n\n\n
  • GAAP net income<\/strong>:\u00a0$62.4\u202fmillion<\/strong>\u00a0($0.15 per share), slightly below the $0.16 consensus<\/li>\n<\/ul>\n\n\n
    \n
    \"\"<\/figure>\n<\/div>\n\n\n
    \n\n\n\n

    2\ufe0f\u20e3 Segment & Customer Metrics<\/h2>\n\n\n\n
      \n
    • Autoship subscriptions<\/strong>: $2.56\u202fbillion,\u00a082.2% of sales<\/strong>, growing ~15% YoY<\/li>\n\n\n\n
    • Active customers<\/strong>:\u00a020.8\u202fmillion<\/strong>, up from 20.0 million last year\u00a0<\/li>\n\n\n\n
    • Net sales per active customer<\/strong>: $583, up from $562 in the prior year\u00a0<\/li>\n<\/ul>\n\n\n
      \n
      \"\"<\/figure>\n<\/div>\n\n\n
      \n\n\n\n

      3\ufe0f\u20e3 Guidance for Q2 & FY2026<\/h2>\n\n\n\n
        \n
      • Q2 FY2026<\/strong>: Revenue expected\u00a0$3.06\u202fB\u2013$3.09\u202fB<\/strong>, adjusted EPS\u00a0$0.30\u2013$0.35<\/strong><\/li>\n\n\n\n
      • FY2026<\/strong>: Full-year sales guidance reaffirmed at\u00a0$12.30\u202fB\u2013$12.45\u202fB<\/strong>\u00a0(+6\u20137% YoY)<\/li>\n<\/ul>\n\n\n\n
        \n\n\n\n

        4\ufe0f\u20e3 Margins & Profitability<\/h2>\n\n\n\n
          \n
        • Gross margin<\/strong>: 29.6%, down from 29.7% in Q1 last year<\/li>\n\n\n\n
        • Adjusted EBITDA margin<\/strong>: ~6.2%, up from 5.1% in Q1 FY2025<\/li>\n\n\n\n
        • Free cash flow<\/strong>: ~$49\u202fmillion for the quarter<\/li>\n<\/ul>\n\n\n\n
          \n\n\n\n

          5\ufe0f\u20e3 CEO Commentary<\/h2>\n\n\n\n

          CEO Sumit Singh noted key performance highlights:<\/p>\n\n\n\n

            \n
          • Autoship strength and customer growth driven Q1 performance<\/li>\n\n\n\n
          • Focus continues on margin improvement through high-margin products like pharmacy, sponsored ads, and vet care<\/li>\n<\/ul>\n\n\n\n
            \n\n\n\n

            The company\u2019s gross margin, a measure of profitability on sales, decreased to 29.6% from 29.7% in the same period a year ago.<\/p>\n\n\n\n

            \"\"<\/figure>\n\n\n\n

            The stock is on a stage 2 markup (bullish) on the monthly and weekly charts. The near term outlook on the daily chart is stage 4 markdown (lower) but on reversal at $41 range and also support at $39 this will be a good stock for a trade to $45.<\/p>\n","protected":false},"excerpt":{"rendered":"

            \ud83d\udc36 Company Snapshot Chewy is a top U.S. online pet retailer, founded in 2011 and headquartered in Plantation, Florida. It offers pet food, supplies, prescriptions, veterinary services, and advertising, generating approximately\u00a0$11.9\u202fbillion in revenue in fiscal 2024, with ~6\u20137% YoY growth. Its main competitors include Petco, Central Garden & Pet (Resilio), and Bark, Inc. 1\ufe0f\u20e3 Q1…<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[11],"tags":[],"class_list":["post-5913","post","type-post","status-publish","format-standard","hentry","category-stocks"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/posts\/5913","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/comments?post=5913"}],"version-history":[{"count":1,"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/posts\/5913\/revisions"}],"predecessor-version":[{"id":5918,"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/posts\/5913\/revisions\/5918"}],"wp:attachment":[{"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/media?parent=5913"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/categories?post=5913"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.mukundmohan.online\/index.php\/wp-json\/wp\/v2\/tags?post=5913"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}