Chewy Analysts Lower Forecasts Despite Q2 Results Beating Expectations
ByAinvest
Thursday, Sep 11, 2025 2:04 pm ET1min read
CHWY--
Despite meeting earnings expectations, Chewy's stock fell 9.67% in premarket trading, closing at $38.03. This decline was likely driven by investor concerns over future guidance and market conditions, as the stock's 52-week high was $48.62 [1].
The company raised its full-year net sales guidance to $12.5-$12.6 billion, signaling confidence in sustained growth. This revision reflects Chewy's strong performance in the quarter, with key drivers including a 15% growth in Autoship customer sales and a 15% increase in Hardgoods business revenue. Additionally, the Chewy Plus membership program exceeded expectations, contributing to the company's success [1].
Chewy's gross margin reached 30.4%, up 90 basis points YoY, and adjusted EBITDA was $183.3 million, representing a 5.9% margin. The company also generated $106 million in free cash flow, enabling it to invest in strategic growth initiatives and share repurchases [1].
Analysts have revised their price targets following the Q2 results. Barclays lowered its price target from $50 to $47, while Baird reduced its target from $52 to $48 [1].
For deeper insights into Chewy’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence [1].
[1]: Chewy Inc. (CHWY) Q2 2025 Earnings Call Transcript, Investing.com, September 10, 2025.
Chewy Inc. reported Q2 2025 adjusted earnings of 33 cents per share, beating the consensus of 14 cents and the management guidance of 30-35 cents. Sales of $3.10 billion, up 8.6% YoY, also exceeded expectations. The company raised its fiscal 2025 sales guidance from $12.3 billion-$12.45 billion to $12.5 billion-$12.6 billion. Analysts have slashed their forecasts following the Q2 results, with Barclays lowering its price target from $50 to $47 and Baird lowering its target from $52 to $48.
Chewy Inc. (CHWY) reported its Q2 2025 earnings, showcasing steady growth in revenue and earnings per share (EPS). The pet e-commerce giant achieved an EPS of $0.33, surpassing analyst expectations and management guidance of 30-35 cents. Revenue of $3.1 billion, up 8.6% year-over-year (YoY), also exceeded forecasts, reaching $3.08 billion [1].Despite meeting earnings expectations, Chewy's stock fell 9.67% in premarket trading, closing at $38.03. This decline was likely driven by investor concerns over future guidance and market conditions, as the stock's 52-week high was $48.62 [1].
The company raised its full-year net sales guidance to $12.5-$12.6 billion, signaling confidence in sustained growth. This revision reflects Chewy's strong performance in the quarter, with key drivers including a 15% growth in Autoship customer sales and a 15% increase in Hardgoods business revenue. Additionally, the Chewy Plus membership program exceeded expectations, contributing to the company's success [1].
Chewy's gross margin reached 30.4%, up 90 basis points YoY, and adjusted EBITDA was $183.3 million, representing a 5.9% margin. The company also generated $106 million in free cash flow, enabling it to invest in strategic growth initiatives and share repurchases [1].
Analysts have revised their price targets following the Q2 results. Barclays lowered its price target from $50 to $47, while Baird reduced its target from $52 to $48 [1].
For deeper insights into Chewy’s valuation metrics and growth potential, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence [1].
[1]: Chewy Inc. (CHWY) Q2 2025 Earnings Call Transcript, Investing.com, September 10, 2025.
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet