Chewy’s Q1 Earnings Beat Estimates, Active Customer Sales Increase Y/Y

From Nasdaq: 2025-06-12 07:17:00

Chewy, Inc. (CHWY) reported strong Q1 fiscal 2025 results, beating estimates. Net sales exceeded guidance, driven by active customer growth and Autoship loyalty. The company expanded its Vet Care initiative with successful customer acquisition. Expectations for new clinics in fiscal 2025 remain on track.

In Q1, CHWY posted 35 cents EPS, beating estimates, and $3.116 billion in net sales, surpassing expectations. Hardgoods sales grew 12.3%, consumables sales rose 6.4%, and Autoship sales increased by 14.8%. Active customers reached 20.8 million, with net sales per customer up by 3.7% year over year.

Gross profit increased by 8.2%, while SG&A expenses rose 8.4% in Q1. Adjusted EBITDA was $192.7 million, up 18.3% year over year. The company ended the quarter with $616.4 million in cash and cash equivalents and remained debt-free.

For the second quarter of fiscal 2025, CHWY expects net sales growth of 7% to 8% and EPS of 30 cents to 35 cents. For the full fiscal year, net sales are projected to grow by 6% to 7%, with adjusted EBITDA margin expansion. CHWY stock has gained 25.6% in the past three months.

Consider stocks like Sprouts Farmers (SFM), Urban Outfitters (URBN), and Canada Goose (GOOS) with strong growth potential. SFM has a Zacks Rank #1, while URBN and GOOS have a Zacks Rank #2. These companies are expected to see significant growth in earnings and sales in the upcoming year.



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