MW Chewy blows past earnings estimates. How the pet-food retailer is weathering the economic storm.

By Ciara Linnane and James Rogers

Online pet-products retailer Chewy's profit and sales were well above consensus estimates

Chewy Inc.'s stock rose 4.9% early Tuesday after the online pet-products retailer blew past earnings estimates for the fourth quarter, buoyed by strong customer growth.

Plantation, Fla.-based Chewy $(CHWY)$ had per-share earnings of 5 cents, down from 7 cents a year ago. Adjusted for one-time items, it had EPS of 28 cents, well ahead of the FactSet consensus for 3 cents.

Sales rose 14.9% to $3.25 billion, also ahead of the $3.19 billion FactSet consensus.

CEO Sumit Singh said the numbers exceeded the high end of the company's guidance ranges and were underpinned by strong customer growth and loyalty to the company's automatic shipping program.

During its fiscal 2024, Chewy had 431,000 active customer net additions. The company had 20.5 million active customers in 2024, up from 20.1 million in the prior year. Net sales per active customer were $578, up from $555 in the prior year.

The company defines active customers as the total number of individual customers who have ordered a product or service, and for whom a product has shipped or for whom a service has been provided, at least once during the preceding 364-day period.

The stock has gained 120% in the last 12 months, while the S&P 500 SPX has gained 11%.

Chewy was thrust into the spotlight last year when influential trader Keith Gill, also known as Roaring Kitty, amassed and then dumped a stake. However, strong execution has seen Chewy shed any meme-stock status it may have accrued.

Earlier this year, Mizuho Securities analyst David Bellinger wrote that Chewy is "entering beast mode for 2025."

-Ciara Linnane -James Rogers

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March 26, 2025 09:11 ET (13:11 GMT)

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