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Chewy Shares Plummet 7% Despite Q2 Earnings and Revenue Beat
ByAinvest
Wednesday, Sep 10, 2025 7:52 am ET1min read
Chewy reported Q2 EPS of $0.33, in line with estimates, and revenue of $3.1 billion, slightly above consensus. However, shares fell 7% as investors expected a stronger beat. Gross margin improved to 30.4%, and adjusted EBITDA rose to $183.3 million. The company expects Q3 net sales between $3.07 billion and $3.10 billion and maintains its full-year guidance.
Chewy, Inc. (NYSE: CHWY) released its second-quarter (Q2) 2025 financial results on September 10, 2025. The company reported earnings per share (EPS) of $0.33, in line with estimates, and net sales of $3.1 billion, slightly above consensus. However, shares fell 7% as investors expected a stronger beat [1].Chewy's gross margin improved to 30.4%, up 90 basis points year-over-year (YoY), while adjusted EBITDA rose to $183.3 million, a 26.5% increase from the same period last year [2]. The company expects Q3 net sales between $3.07 billion and $3.10 billion and maintains its full-year guidance [3].
Despite the strong financial performance, Chewy's shares fell due to higher-than-expected earnings estimates. The company's net margin declined to 2.0% from 2.85% in the same period last year, primarily due to the release of a valuation allowance on deferred tax assets [2].
Looking ahead, Chewy remains optimistic about its growth trajectory. The company plans to continue investing in infrastructure and technology to support its growing customer base and improve operational efficiency. The Autoship program, which drives a substantial portion of its sales, is expected to see new features and services introduced to cater to the evolving needs of pet parents [1].
Management will host a conference call and webcast to discuss Chewy's financial results today at 8:00 am ET.
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