Chewy Inc. reported a stronger-than-expected first quarter for 2025, with adjusted earnings of 35 cents per share, a 12.9% increase from last year. Yahoo News noted that this exceeded the consensus estimate of 34 cents and its guidance of 30-35 cents.
The online pet supplies retailer reported $3.12 billion in sales, an 8.3% year-over-year growth, surpassing the consensus estimate of $3.08 billion and its guidance of $3.06 billion to $3.09 billion.
According to Yahoo News, CEO Sumit Singh noted growth in active customers, positive profitability, and free cash flow trends.
Chewy’s Autoship program sales reached $2.56 billion, up 14.8%, making up 82.2% of net sales. Gross margin dipped slightly to 29.6%, while net sales per active customer increased by 3.7% to $583.
Adjusted EBITDA climbed from $162.9 million to $192.7 million, resulting in an adjusted EBITDA margin improvement of 50 basis points year-over-year to 6.2%. The company reported an increase in active customers, reaching 20.756 million, which is up by 3.8%.
In terms of cash flow, Chewy generated $48.7 million in free cash flow and ended the quarter with $616.4 million in cash and equivalents.
The company expects fiscal year 2025 sales of $12.30 billion to $12.45 billion, below Wall Street’s $12.54 billion estimate, and projects an adjusted EBITDA margin of 5.4% to 5.7%, up from 4.8% in 2024.
Chewy expects Q2 2025 sales between $3.06 billion and $3.09 billion, above the $3.03 billion consensus estimate. Adjusted earnings are projected at 30 to 35 cents per share, compared to a consensus of 31 cents.
