Chewy Inc. (NYSE:CHWY) on Wednesday reported a second-quarter 2025 adjusted earnings of 33 cents per share, beating the consensus of 14 cents and the management guidance of 30-35 cents.
The retailer of pet supplies reported sales of $3.10 billion, up 8.6% year over year, compared to the consensus of $3.08 billion and the management guidance of $3.06 billion-$3.09 billion.
Autoship customer sales reached $2.58 billion, up 14.9%. Chewy Autoship is a recurring delivery program that allows customers to schedule regular shipments of pet food and supplies.
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It offers a discount on the initial order and ongoing savings on recurring orders. In the quarter, Autoship customer sales represented 83% of net sales.
Gross margin saw a year-over-year increase of 90 basis points at 30.4%. Net sales per active customer increased by 4.6% to $591.
Adjusted EBITDA increased 26.5% to $183.3 million. The adjusted EBITDA margin increased by 80 basis points year over year to 5.9%. Chewy reported active customers of 20.906 million, up 4.5% year over year.
“Q2 net sales exceeded the high end of our guidance range…,” said Sumit Singh, CEO of Chewy. “Chewy’s differentiated value proposition was once again on display, with both active customers and share of wallet (NSPAC) growing 4.5% year over year to reach nearly 21 million customers and $591, respectively.”
Net income fell from $299.1 million a year ago to $62 million; however, adjusted net income increased from $104.7 million to $141.1 million.
Outlook
Chewy expects third-quarter adjusted earnings of 28-33 cents per share versus the consensus of 23 cents.
The pet product retailer forecasts third-quarter sales of $3.07 billion-$3.1 billion compared to the consensus of $3.05 billion.
Chewy raises fiscal 2025 sales guidance from $12.3 billion-$12.45 billion to $12.5 billion-$12.6 billion compared to the consensus of $12.58 billion, with adjusted EBITDA margin expected to be 5.4%-5.7%.
Price Action: CHWY stock is trading lower by 9.50% to $38.10 premarket at last check Wednesday.
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