Chewy Inc
The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.
JPMorgan On Chewy
Analyst Doug Anmuth reiterated an Overweight rating, while lifting the price target from $38 to $40.
Chewy delivered strong execution and achieved growth in active customers and profitability in the quarter, Anmuth said in a note. The company recorded year-on-year active customer growth for the first time in around two years and guided to low-single-digit growth in 2025, he added.
"While the broader pet industry is expected to grow +3.5-4.5% in FY25, we believe CHWY continues to gain share," the analyst wrote. Management guided to net sales growth of 6%-7% in 2025, reflecting "strong execution, stable industry trends, & the secular shift toward online pet spending," he further stated.
Wedbush On Chewy
Analyst Seth Basham maintained an Outperform rating and price target of $39.
Chewy reported revenues of $3.25 billion, up 6.9% year-on-year, excluding the extra week benefit, beating consensus of $3.20 billion, Basham said. Active customers rose to 20.51 million, exceeding the consensus of 20.31 million, with "improvement in new customer acquisitions, reactivations, and churn," he added.
Net spending per active customer (NSPAC) came in at $578, slightly lower than the consensus of $581, the analyst stated. "We see the outlook as conservative as CHWY's new/reactivated customer improvement appears sustainable with successful marketing programs and healthy cohort dynamics," he wrote.
RBC Capital Markets On Chewy
Analyst Steven Shemesh reiterated an Outperform rating and price target of $42.
Chewy reported fourth-quarter net adds of 354,000, representing an acceleration from the previous quarter's 158,000, Shemesh said. The company's gross margins expanded, led by sponsored advertisements, he added.
Management guided to 2025 net sales of 6%-7%, "driven by +LSD active customer growth and minimal price inflation," the analyst stated. Chewy's guidance reflects "minimal tariff impact," he further wrote.
Morgan Stanley On Chewy
Analyst Nathan Feather reaffirmed an Overweight rating and price target of $40.
The fourth quarter "capped off an inflection year" for Chewy, with customer growth returning to positive territory and around 150 basis points of margin expansion, Feather said. The company's revenue growth accelerated to around 7% year-on-year, he added.
The improvement was led by customer additions, which was the highest since the first quarter of 2021 and well above expectations, the analyst stated. "Importantly this was due to micro rather than macro as CHWY's improved marketing efficiency," he wrote.
Needham On Chewy
Analyst Bernie McTernan maintained a Hold rating on the stock.
Chewy announced better-than-expected fourth-quarter results and 2025 guidance, McTernan said. The company's net customer adds seem to be inflecting, driven by "investments in supply, customer experience and marketing," he added.
These tailwinds are likely to support continued customer growth in 2025, the analyst stated. "We forecast customer growth to accelerate slightly to +2.9% vs +2.1% last year, (or +150K per quarter) which likely leaves upside risk to our estimates if the company is able to continue to drive marketing efficiencies," he wrote.
CHWY Price Action: Shares of Chewy had declined by 1.1% to $32.86 at the time of publication on Thursday.
