From Yahoo Finance: 2025-06-11 10:33:00

Chewy Inc. reported first-quarter 2025 adjusted earnings of 35 cents per share, exceeding the consensus of $34 cents and management guidance. Sales reached $3.12 billion, up 8.3% YoY, surpassing the consensus of $3.08 billion. CEO Sumit Singh noted sales exceeded guidance, with growth in active customers and positive profitability.

Autoship customer sales rose to $2.56 billion, up 14.8%, with Autoship representing 82.2% of net sales. Gross margin experienced a modest YoY decline of 10 basis points at 29.6%. Net sales per active customer increased by 3.7% to $583.

Adjusted EBITDA increased to $192.7 million, with a margin increase of 50 basis points YoY to 6.2%. Chewy reported 20.756 million active customers, up 3.8% YoY. The company generated $48.7 million in free cash flow in the first quarter.

For fiscal year 2025, Chewy expects sales of $12.30 billion-$12.45 billion, lower than the Wall Street estimate. The company anticipates an adjusted EBITDA margin of 5.4%-5.7%. For Q2 2025, Chewy expects sales of $3.06 billion-$3.09 billion and adjusted earnings of 30-35 cents per share, below consensus. CHWY stock is trading lower by 11.3% at $40.60.

Read more: Pet Food Retailer Chewy Clocks Q1 Earnings Beat, Guides For Annual EBITDA Margin Expansion