Chewy (CHWY) reached a significant support level, and could be a good pick for investors from a technical perspective. Recently, CHWY broke through the 200-day moving average, which suggests a long-term bullish trend. A useful tool for traders and analysts, the 200-day simple moving average helps determine long-term market trends for stocks, commodities, indexes, and other financial instruments. It moves higher or lower in conjunction with longer-term price performance, and serves as a support or resistance ...

Key Points Chewy, Inc. NYSE: CHWY defied expectations and produced a solid Q1 that suggests momentum, continued strength, and rapidly improving shareholder value in the year's second half. Although growth has slowed, performance is better than expected, compounded by significant margin improvement. The margin improvement is the most notable detail, as it led the board to authorize a share repurchase program. Chewy, Inc.'s share repurchase program is worth $500 million without expiration. The sum is worth ab ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The ...

Chief Financial Officer David Reeder noted that pet parents' adoption and relinquishment behaviors are strongly tied to macroeconomic trends. "From what would turn customer accounts positive, … really, we needed inflation to normalize," Reeder said. "… Inflation in the market normalizing would free up discretionary income for consumers, would give them the ability to then become additional pet parents in the future. He said the company is looking for "normalization of inflationary pressures that are putting ...

The beaten-down pet supply e-commerce platform exceeded low expectations. But is it really a sign of a turnaround? Shares of pet supply e-commerce platform Chewy (CHWY 28.86%) were rising on Wednesday, trading up 27% as of 11 a.m. ET. Also important in these times of higher interest rates, Chewy achieved positive profitability, with its adjusted margin under earnings before interest, taxes, depreciation, and amortization (EBITDA) expanding to 5.7% from 4% in the year-ago quarter. Lastly, the board authorize ...

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance. Chewy (CHWY) reported $2.88 billion in revenue for the quarter ended April 2024, representing a year-over- year increase of 3.3%. EPS of $0.31 for the same period compares to $0.20 a year ago. The reported revenue represents a surp ...

Key Takeaways Chewy (CHWY) shares skyrocketed over 26% in early trading Wednesday after the e-commerce pet food and supplies retailer reported results that topped forecasts and announced a new stock buyback plan as its automatic delivery sales jumped. Chewy posted first-quarter revenue of $2.88 billion, rising 3.1% from a year ago and beating analysts' estimates compiled by Visible Alpha. Net income of $66.9 million nearly tripled from $22.86 million in the year-ago period, far exceeding expectations, while ...

Financial Data and Key Metrics - Q1 net sales increased by 3% to $2.88 billion, exceeding the high end of guidance [33] - Autoship customer sales reached $2.2 billion, representing 77.6% of net sales, up 6.4% YoY [33] - Gross margin for the quarter was 29.7%, a 130 basis point increase YoY and 150 basis points sequentially [57] - Adjusted EBITDA margin was 5.7%, representing 170 basis points of margin expansion YoY and 260 basis points sequentially [58] - Free cash flow for the quarter was $52.6 million, with $1.1 billion in cash and cash equivalents, and a strong liquidity position of $1.9 billion [26] Business Line Data and Key Metrics - Chewy Health saw strong performance, with net sales penetration expanding in healthcare and premium consumables [40] - Sponsored ads business contributed significantly to gross margin improvement, with plans to scale to 1% to 3% of net sales [37][89] - Chewy Plus, a new paid membership program, was launched in beta, offering benefits like free shipping and cash rewards [20] Market Data and Key Metrics - Expansion into Canada is progressing as planned, with high customer NPS and growing demand for premium consumables [22] - The company opened three additional Chewy Vet Care clinics, bringing the total to four, with plans to open more in 2024 [36] Company Strategy and Industry Competition - The company remains focused on strategic initiatives like Chewy Plus and Chewy Health, aiming to drive long-term growth and margin expansion [20][36] - The pet industry is showing signs of normalization, with positive trends in pet household formation and adoption rates [55][98] - The company is leveraging its Autoship program and personalized customer care to maintain a competitive edge [22] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's ability to execute its strategic roadmap and deliver compelling results, despite a challenging macro environment [28] - The company is cautiously optimistic about the pet industry's normalization, with early signs of green shoots in demand trends [27][55] - Management highlighted the importance of disciplined cost management and operational efficiency in driving profitability [25] Other Important Information - The company announced its first-ever share repurchase program of up to $500 million, reflecting confidence in its financial position and long-term strategy [42] - Full-year 2024 guidance for net sales is maintained at $11.6 billion to $11.8 billion, with adjusted EBITDA margin guidance raised to 4.1% to 4.3% [60][43] Q&A Session Summary Question: How does the company plan to grow revenue without increasing customer count? - The company is focusing on increasing wallet share through programs like Autoship and expanding into new categories like Chewy Health [24] Question: What are the key metrics for measuring the success of Chewy Vet Care clinics? - Success will be measured by customer satisfaction scores, vet retention and recruitment, and operational execution [63][64] Question: How will the share repurchase program be executed? - The company plans to enter the market both opportunistically and consistently, with the goal of mitigating dilution from share-based compensation [46][67] Question: What are the expectations for hard goods category performance? - The company has seen some improvement in the hard goods category, with declines slowing, but challenges are expected to continue in the near term [48][69] Question: What is driving the gross margin improvement? - Gross margin improvement is driven by product mix, sponsored ads, and healthcare, with continued focus on premiumizing the business [50][79] Question: How does Chewy Plus interact with Autoship? - Chewy Plus and Autoship are seen as complementary programs, with Chewy Plus offering additional benefits to Autoship customers [90] Question: What are the marketing priorities for the company? - The company is focused on full-funnel marketing efforts, with a balance between new customer acquisition and retention, while maintaining flexibility in spend [91][95] Question: What are the expectations for customer count trends? - The company expects active customer counts to be flat to slightly down in the first half of 2024, with potential recovery in the second half [86][98] Question: What is driving the optimism around Chewy Vet Care clinics? - Early signs of success in demand generation, vet retention, and operational execution are driving optimism for the clinics [99][119] Question: How is the company managing churn and reactivation? - The company has seen improved churn rates YoY, with reactivations up mid-teens, but continues to focus on reducing churn in newer cohorts [117][131]

Chewy (CHWY) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non- recurring items. Chewy, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $2.88 billion for the quarter ended April 2024, surpassing the Zacks Consensus Estimate by 1.05%. This compares to year-ago revenues of $2.78 billion. The company has topped consensus reve ...

The shares of Chewy Inc (NYSE:CHWY) are 14.3% higher premarket, after the online pet supply retailer unveiled a better-than-expected quarterly report. The company's first-quarter results featured adjusted earnings of 15 cents per share on revenue of $2.88 billion, both of which topped Wall Street's estimates. In addition, Chewy announced a share buyback plan of up to $500 million. A short squeeze could catch bearish bettors off guard. Short interest fell 3% in the most recent reporting period, yet the 22.69 ...