Chewy to Report Q4 Earnings: Essential Insights Ahead of the Report
Chewy, Inc. CHWY is likely to report top-line growth when it reports fourth-quarter fiscal 2025 results tomorrow. The Zacks Consensus Estimate for quarterly sales is currently pegged at $3.3 billion, showing a 0.3% rise from the year-ago quarter’s tally.
The consensus mark for earnings for the fiscal fourth quarter has been stable over the past 30 days at 28 cents a share. This remains comparable with the year-earlier quarter’s reported figure.
This pet food and other pet-related supplier delivered an earnings surprise of 10.7%, on average, in the trailing four quarters. In the last reported fiscal quarter, ChewyCHWY-- recorded an earnings surprise of 6.7%.
Factors Likely to Impact Chewy’s Q4 Results
Chewy’s performance for the fiscal fourth quarter is likely to have benefited from its digital capabilities, product assortments and expansion efforts. Management has been making technology upgrades for its website and online platforms to drive sales. Resiliency in the pet category and strength in the value proposition have been positive. Its expansion into pet healthcare and high-margin services has been encouraging.
Chewy’s Autoship program, which provides predictable, recurring revenues while improving operational efficiency and customer retention, is proving beneficials. This is complemented by the expansion of Chewy+, a paid membership offering designed to increase order frequency, encourage discovery across categories and drive higher spending per customer. It is also strengthening its flywheel model that connects Autoship, Chewy+ and a personalized mobile app experience.
Chewy is placing strong emphasis on data-driven marketing and a mobile-first strategy to improve customer acquisition and retention. By leveraging advanced analytics, personalized experiences and improved app functionality, the company has been increasing conversion rates, attracting higher-quality customers and boosting marketing efficiency. All such strengths are likely to drive fourth-quarter fiscal 2025 results.
Aforesaid factors are likely to have driven net sales per active customer and autoship customer sales in the quarter under review. The Zacks Consensus Estimate for net sales per active customer is presently $593, showing a rise of 2.6% from the year-earlier quarter.
On the flip side, a tough operating environment, coupled with any deleverage in expenses, is likely to have posed challenges. A subdued industry demand environment, heavier promotional activity and potential moderation in customer additions are likely to have limited near-term operating leverage in the to-be-reported quarter.
What the Zacks Model Unveils for CHWY
Our proven model conclusively predicts an earnings beat for Chewy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Chewy currently has an Earnings ESP of +7.14% and a Zacks Rank of 3.
Other Stocks With the Favorable Combination
Here are a few companies, which according to our model, also have the right combination of elements to come up with an earnings beat this reporting cycle:
FIGS, Inc. FIGS has an Earnings ESP of +68% and a Zacks Rank of 1. FIGS’ earnings for the first quarter of 2026 are pegged at a penny per share. The consensus mark for its quarterly earnings was at a loss of a penny 30 days ago. The company reported break-even earnings in the year-earlier quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIGS’ quarterly revenues is pegged at $150 million, which suggests growth of 20% from the figure reported in the prior-year quarter. FIGS has a trailing four-quarter earnings surprise of 187.5%, on average.
Wingstop Inc. WING currently has an Earnings ESP of +2.15% and a Zacks Rank of 3. WING is likely to register a bottom-line increase when it reports third-quarter 2026 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.05 suggests an increase of 6.1% from the year-ago fiscal quarter’s reported number.
WING’s top line is expected to have improved from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $190.5 million, suggesting growth of 11.3% from the prior-year fiscal quarter’s reported figure. WING has a trailing four-quarter earnings surprise of 17.6%, on average.
Dutch Bros BROS currently has an Earnings ESP of +2.20% and a Zacks Rank of 3. The company is expected to register a bottom-line increase when it reports first-quarter 2026 results. The Zacks Consensus Estimate for quarterly earnings per share of 15 cents suggests a rise of 7.1% from the year-ago quarter.
The consensus mark for revenues is pegged at $447.2 million, indicating a rise of 25.9% from the figure reported in the year-ago quarter. BROS has a trailing four-quarter earnings surprise of 41.6%, on average.
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Wingstop Inc. (WING): Free Stock Analysis Report
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Dutch Bros Inc. (BROS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
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