Overview
- Chewy, which reported results Wednesday, delivered Q1 net sales of $3.36 billion and adjusted EPS of $0.43, a modest beat versus Wall Street forecasts and an improvement in net income to $94.8 million.
- The company trimmed its full-year net sales forecast to $13.4 billion–$13.55 billion and guided Q2 revenue to $3.30 billion–$3.33 billion with roughly $0.36 in adjusted EPS, both below Street expectations.
- Active customers grew to 21.5 million, up 3.6% year over year, and net sales per active customer rose to $597, showing continued customer gains even as spending patterns shift.
- Chewy reaffirmed its full-year adjusted EBITDA margin target of 6.6%–6.8% and highlighted profitability efforts including expected AI-driven cost savings that will boost operating efficiency.
- The report triggered volatile trading—shares spiked in premarket trading before falling back—and underscores wider pet-sector pressure from more price-sensitive consumers, a trend investors should watch for its effect on growth, product mix, and hiring plans.