On Wednesday, Chewy Inc. CHWY reported better-than-expected second-quarter 2024 results and reaffirmed annual guidance. The company reported sales of $2.86 billion, up 2.6% year over year, almost in line with the consensus of $2.86 billion and the management guidance of $2.84 billion—$2.86 billion. The retailer of pet supplies reported adjusted EPS of $0.24 compared to the consensus of $0.02 and $0.15 a year ago. JP Morgan analyst writes, "We're encouraged that Chewy's Active Customers returned to growth fo ...

Martin Barraud/OJO Images via Getty Images Recap We last discussed Chewy (NYSE:CHWY) in December 2023. Within fewer than eight months, the stock has increased by 70% since we issued a buy rating of $17.5. Despite fierce competition, we think Chewy should be able to endure in this harsh environment, and the market's response indicates that the company has probably established itself in the sector. | --- | --- | |---------------------------------|--------| | Stock Covered | CHWY | | Analyst's rating at public ...

Chewy said its investment in veterinary clinics is helping it attract new customers. The online pet product retailer released quarterly earnings Wednesday (Aug. 28) showing net sales increasing nearly 3% to $2.86 billion in the second quarter. CEO Sumit Singh told analysts during an earnings call that the company's vet care clinics, two of which have opened this quarter, are helping drive sales. "With each additional week and month of operations across our clinic footprint, we are steadily accumulating data ...

Core Insights - Chewy Inc. reported second-quarter 2024 results that exceeded expectations, with sales of $2.86 billion, reflecting a year-over-year increase of 2.6% [1] - The company reaffirmed its annual guidance, with adjusted EPS of $0.24, significantly higher than the consensus estimate of $0.02 and up from $0.15 a year ago [1] Customer Engagement - Unique customers placing orders through the Chewy app increased by approximately 13% year-over-year, while overall mobile app orders rose by about 15% [2] - The CEO noted improvements in both units per order and customer retention linked to app usage [2] Active Customer Growth - Chewy ended the second quarter with around 20 million active customers, marking a modest sequential growth in net ads for the first time since Q1 2023 [3] - JP Morgan analysts expressed optimism regarding the return to growth in active customers, highlighting potential positive trends in the industry [3] Market Reaction - JP Morgan maintained an Overweight rating on Chewy stock, which saw a price increase of 14.5%, reaching $29.60 [4]

Chewy delivered strong bottom-line growth in its second-quarter report. Shares of Chewy (CHWY 15.58%) were soaring today after the online pet products seller posted strong earnings growth in its second-quarter earnings report, showing the pet products industry may finally be emerging from a long slump. As a result, Chewy stock was up 15% as of 10:20 a.m. ET on the news. Chewy hops over a low bar Chewy's growth rate remained muted in the second quarter as revenue rose 2.6% to $2.86 billion, matching estimate ...

Chewy (CHWY) stock is soaring in Wednesday's session after the online pet products retailer blew past earnings expectations for its second quarter. In the 13 weeks ended July 28, Chewy said its earnings per share (EPS) jumped to 24 cents from 9 cents in the year-ago period. Revenue was up 2.6% year-over-year to $2.86 billion, helped by a 5.8% jump in Autoship customer sales to $2.24 billion. "Our Q2 performance reflects another quarter of strong execution, delivering net sales at the high end of our guidanc ...

TH the state n and in 5 and and the ... while r and e the and the the first the p d 1969 8 # 75.85 T Colonial HD E t H the state the first the first 4000 t sitox Investment Thesis Chewy, Inc. (NYSE:CHWY) continues to prove doubters wrong (yes, me too). Not only is the business resolutely shaking off its post-Covid blues, but more importantly, it appears that starting in Q4 2024, the business will be back to growth mode. And yet, the stock is already priced at 19x forward EBITDA. This means despite all of ma ...

Financial Data and Key Metrics - Q2 net sales grew by 3% to $2.86 billion, at the high end of guidance [5][14] - Autoship customer sales grew 6% to $2.2 billion, representing 78.4% of total net sales, up 230 basis points YoY [5][15] - Net sales per active customer (NSPAC) reached a record $565, growing 6.2% YoY [6][15] - Gross margin expanded 120 basis points YoY to 29.5%, slightly ahead of expectations [8][16] - Adjusted EBITDA margin expanded 190 basis points YoY to 5.1%, with $145 million in adjusted EBITDA [8][18] - Free cash flow was $91.5 million, with $695 million in cash and marketable securities at quarter-end [10][18] Business Line Performance - Autoship program continues to drive engagement, with 78% of net sales coming from Autoship customers [5][15] - Chewy Vet Care clinics expanded to six locations, with early indicators showing strong customer acquisition and cross-category shopping behavior [10][11] - Sponsored Ads business is on track to reach the low end of the long-term target of 1%-3% of net sales by the end of 2024 [12] - Mobile app orders increased 15% YoY, with unique customers placing orders through the app up 13% YoY [6][7] Market Performance - Active customers grew modestly to 20 million, with net ads growing sequentially for the first time since Q1 2023 [7][14] - Canada market is performing as expected, with mid-to-high teens traffic coming from Ontario and strong customer engagement through the app [29] - Pet adoptions remained up in the low-teens YoY, while relinquishments were down low to mid-single digits YoY, indicating improving trends in pet household formation [25] Strategic Initiatives and Industry Competition - Chewy Vet Care is serving as an acquisition funnel, with net new customers acquired through clinics exceeding expectations [11] - Sponsored Ads are benefiting from inventory expansion, advertiser demand growth, and improved customer relevancy [12] - The company is focusing on mobile app improvements, with less than 20% of orders currently transacting through the app, compared to a target of over 60% [40][41] - Competitive trends remain stable, with Chewy effectively competing in consumables and health categories, while hard goods have stabilized [60][61] Management Commentary on Operating Environment and Outlook - Management highlighted the predictability and durability of the business model, even in a normalizing market [14] - The company expects gross margin to continue expanding as higher-margin businesses become a larger portion of total sales [8] - Full-year 2024 guidance includes net sales of $11.6-$11.8 billion (4%-6% YoY growth) and adjusted EBITDA margin of 4.5%-4.7%, up from previous guidance [20][21] - Management remains optimistic about returning to active customer growth in fiscal 2025 [26] Other Important Information - The company repurchased 17.6 million shares for $500 million from BC Partners and 1.3 million shares under its $500 million share repurchase program [19] - SG&A expenses improved by 100 basis points YoY to 18.8% of net sales, driven by fulfillment center automation and operational efficiencies [16] - Adjusted net income was $104.8 million, up 62% YoY, excluding a one-time tax benefit of $276 million [17] Q&A Summary Question: Trends in pet adoptions and expectations for active customer growth in fiscal 2025 [24] - Pet adoptions remained up in the low-teens YoY, while relinquishments were down low to mid-single digits YoY, indicating improving trends in pet household formation [25] - Management expects to return to active customer growth in fiscal 2025, driven by the value proposition of new products and services [26] Question: SG&A trends and international market performance, particularly in Canada [27] - SG&A expenses improved by 100 basis points YoY, with expectations for relatively flat SG&A going forward [28] - Canada is performing as expected, with strong app engagement and mid-to-high teens traffic from Ontario [29] Question: Changes in the consumer journey and competitive environment [32] - The secular trend towards e-commerce continues, with Chewy well-positioned to capture market share [34] - Competitive trends remain stable, with Chewy effectively competing in consumables and health categories, while hard goods have stabilized [36][60] Question: Mobile app improvements and future investments [39] - Mobile app orders increased 15% YoY, with unique customers placing orders through the app up 13% YoY [6][7] - The company aims to increase app order penetration from less than 20% to over 60% over time [40][41] Question: Monthly trends and hard goods performance [43] - Monthly trends were in line with expectations, driven by the predictability of Autoship and consumables [43] - Hard goods have stabilized, with sequential improvement in active customers and pet household formation [44] Question: Contribution of Canada to net ads and mobile app order trends [45] - Canada remains immaterial to overall customer base growth, with net ads driven by new customer acquisition and reactivation efforts in the U.S. [45] - Mobile app order trends are improving, with the company focusing on funneling mobile web users to the app [47] Question: Margin trends and marketing spend as active customer growth returns [49] - The company is acquiring higher-quality customers, with strong NSPAC curves and improved conversion rates [50] - Margin expansion is driven by Sponsored Ads, healthcare mix, and fulfillment center efficiencies [52] Question: Net ads trends and gross margin drivers [54] - Net ads are expected to be flat to slightly up in the second half of 2024, consistent with previous guidance [55] - Gross margin expansion is driven by Sponsored Ads, healthcare mix, and fulfillment center efficiencies [56] Question: Competitive trends and vet recruitment for Chewy Vet Care [60] - Competitive trends remain stable, with Chewy effectively competing in consumables and health categories, while hard goods have stabilized [60] - Vet recruitment is driven by the Chewy brand, career growth opportunities, and technology that reduces back-office work [62][63]

Chewy Today CHWY Chewy $29.15 +3.29 (+12.72%) 52-Week Range $14.69 ▼ $39.10 P/E Ratio 161.94 Price Target $27.57 Add to Watchlist Chewy's NYSE: CHWY stock price has struggled since the peaks set in 2020 because it could not sustain the wicked-hot growth pace driven by pandemic spending and stimulus measures. Today's takeaway is that the market for Chewy stock has normalized, and its business turned a corner in the first half of the year, setting it up to complete a technical reversal that will lead to a sus ...

For the quarter ended July 2024, Chewy (CHWY) reported revenue of $2.86 billion, up 2.9% over the same period last year. EPS came in at $0.24, compared to $0.15 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $2.86 billion, representing a surprise of -0.09%. The company delivered an EPS surprise of +9.09%, with the consensus EPS estimate being $0.22. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they comp ...