TLDR

Table of Contents

Chewy exceeded Q4 earnings estimates with adjusted EPS of $0.28 vs expected $0.03
Net sales rose 14.9% to $3.25 billion, ahead of the $3.19 billion forecast
Active customers increased to 20.5 million, driving strong performance
Q1 2025 guidance: 6-7% sales growth to $3.06-$3.09 billion
Full-year 2025 guidance: 6-7% sales growth to $12.30-$12.45 billion

Chewy Inc., the online pet product retailer, reported fourth-quarter earnings that significantly exceeded analyst expectations. The company announced the results on Tuesday, triggering a 3% rise in its stock in early trading.

Earnings Beat Wall Street Projections

Plantation, Florida-based Chewy posted earnings per share (EPS) of 5 cents, down from 7 cents a year ago. After adjusting for one-time items, the company reported EPS of 28 cents.

This figure greatly surpassed the FactSet consensus estimate of just 3 cents per share. The impressive performance reflects the company’s strong execution during the quarter.

Sales for the quarter reached $3.25 billion, marking a 14.9% increase from the previous year. This also beat analyst expectations of $3.19 billion according to FactSet consensus.

The 14-week period ended February 2 was marked by robust growth across key metrics. CEO Sumit Singh noted that the numbers exceeded the high end of the company’s guidance ranges.

Customer Growth Drives Success

The company’s performance was boosted by an increase in active customers to 20.5 million. This customer growth was highlighted as a key driver of the quarter’s success.

Singh emphasized that strong customer loyalty to Chewy’s autoship program contributed to the robust results. The autoship program allows customers to schedule regular deliveries of pet supplies.

This customer-centric approach has paid off for the online retailer. The company has built momentum heading into its 2025 fiscal year.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) reached $124.5 million. This exceeded Bloomberg consensus projections of $118.4 million.

The strong customer metrics indicate that Chewy’s business model continues to resonate with pet owners. The company has maintained its competitive edge in the online pet product market.

Forward Guidance Remains Positive

Looking ahead to the first quarter of fiscal 2025, Chewy forecasts net sales growth of approximately 6% to 7% year-over-year. This translates to a range of $3.06 billion to $3.09 billion.

Analysts at Vital Knowledge noted that Wall Street was expecting a forecast of $3.04 billion. Chewy’s guidance therefore exceeded these market expectations.

Per-share profit for Q1 is projected to be between $0.30 and $0.35. The midpoint of this range is roughly in line with analyst expectations of $0.33.

For the full 2025 fiscal year, Chewy anticipates net sales to increase by 6% to 7%. This would bring total sales to between $12.30 billion and $12.45 billion.

The company also guided core income margins to be between 5.4% and 5.7% for the full year. These forward-looking statements suggest continued confidence in Chewy’s business model.

Chewy stock has performed remarkably well over the past year. The shares have gained 120% in the last 12 months.

This growth far outpaces the S&P 500, which has gained 11% over the same period. Shares in Chewy continued to trade higher in premarket U.S. trading following the earnings announcement.

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