Overview
- Chewy reported fiscal first-quarter results on June 10, with $3.36 billion in net sales, $94.8 million in net income, and $0.43 in adjusted earnings per share.
- Adjusted EBITDA rose to $253.1 million and gross margin improved to 30.1%, helped by Autoship recurring sales that made up roughly 84% of net sales.
- The retailer added nearly 200,000 net active customers, growing its base to 21.5 million and raising net sales per active customer to $597.
- Despite the quarter’s operational gains, Chewy cut full-year revenue guidance to $13.4 billion–$13.55 billion and guided Q2 revenue and adjusted EPS below many Wall Street expectations, which sent the stock lower and prompted several analyst price-target cuts.
- Management said it will keep its adjusted EBITDA margin target for 2026, pursue AI-driven efficiency savings this year with bigger gains expected in 2027, and watch rising consumer price sensitivity that could slow discretionary pet spending.