Chewy's Q4 Revenue Growth and Strong Projections

Chewy Inc. reported a strong performance for its fiscal fourth quarter, exceeding analyst expectations with adjusted earnings of $0.28 per share, a 33.33% surprise over the Zacks Consensus Estimate. The online pet retailer's revenue increased by nearly 15% year-over-year to $3.25 billion, driven by a 2% rise in active customers to 20.5 million and robust Autoship customer loyalty, with Autoship sales accounting for over 80% of total revenue. Despite a slight decline in net profit, Chewy's gross profit and adjusted EBITDA showed notable growth, indicating improved operational efficiency. Analysts maintain a positive outlook on Chewy as it projects continued sales growth for fiscal 2025, with expected net sales between $12.3 billion and $12.45 billion, representing a 6-7% year-over-year increase. Chewy's strategy includes expanding its profit margins through automation, premium product lines, and increased revenue from sponsored advertisements. The company's stock has risen significantly, reflecting investor confidence in its growth trajectory.