Chewy Earnings Preview: Stock (CHWY) Rallying Into The Print

Chewy Inc. (CHWY), the online pet retailer giant, is set to report its fiscal second-quarter earnings this morning, before market open. The Chewy stock price is rallying into the print, up 4.82% in the pre-market to add to the 17.7% gain in the month leading in.

Analysts expect a strong quarter for Chewy, projecting EPS of $0.33 (up 37.5% from $0.24 last year) and revenue of $3.08 billion, representing solid 7.75% year-over-year growth, reflecting optimism around the pet e-commerce company's subscription-based business model. The stakes are high for Chewy to demonstrate continued growth in a dynamic market.

Chewy's first quarter results, reported on June 11, 2025, painted a picture of robust performance. The company reported net sales of $3.12 billion, an 8.3% year-over-year increase, exceeding analyst expectations of $3.08 billion.

Adjusted EPS came in at $0.35, significantly surpassing the consensus estimate of $0.03. The active customer base grew by 3.8% to 20.76 million, reversing previous declines, and autoship sales accounted for a significant 82.2% of total net sales, underscoring strong customer loyalty.

However, the positive first-quarter results were met with a somewhat muted market reaction. Despite exceeding expectations, Chewy's stock experienced a notable decline in premarket trading following the earnings announcement.

Prior to the first-quarter earnings release, Mizuho Securities analyst David Bellinger downgraded Chewy's stock to a “Hold” rating. Bellinger argued that the stock's significant rally from April lows had already priced in much of the company's growth potential. His sentiment, “We wouldn’t be putting new money to work at these levels,” reflects a broader concern about Chewy's current valuation.

While the prevailing sentiment seems to be one of cautious optimism, it's worth considering a contrarian perspective. Chewy has consistently demonstrated its ability to adapt to the evolving needs of pet owners. The company's focus on customer service, coupled with its extensive product offerings, has created a strong brand loyalty that is difficult for competitors to replicate.

Chewy's upcoming earnings report will be a critical test of the company's ability to maintain its growth trajectory and validate its current valuation. While the company's recent performance has been impressive, the market remains skeptical and will be closely scrutinizing the second-quarter results for signs of weakness.

.

Whether Chewy can continue to defy expectations and deliver strong financial results remains to be seen. The company's ability to manage costs, innovate its product offerings, and maintain its strong customer relationships will be key to its long-term success. As Chewy continues to navigate the competitive online retail landscape, staying attuned to market dynamics and market sentiment will be paramount.