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Chewy, Inc. (NYSE: CHWY), a leading online retailer for pet products, has announced its financial results for the first quarter of fiscal year 2025. The company has showcased a robust start with notable increases in net sales and adjusted earnings per share, despite some challenges in meeting expected earnings per share.

Overview of Chewy’s Q1 2025 Performance

Chewy, Inc. has reported net sales of $3.12 billion for the first quarter of fiscal year 2025, marking an 8.3% increase compared to the same period last year. This figure not only highlights the company’s growth but also surpasses the revenue expectation of $3.07 billion set for the quarter. The growth in net sales is attributed to an increase in active customers and a higher net sales per active customer, which rose by 3.7% to $583.

Despite the positive revenue performance, Chewy faced challenges in meeting its earnings expectations. The company reported basic and diluted earnings per share of $0.15, which remained consistent with the previous year but fell short of the anticipated $0.34. This shortfall is partly due to increased operating expenses, which rose to $846.9 million from $789.4 million in the prior year. However, Chewy’s adjusted earnings per share showed a positive trend, with basic adjusted EPS rising to $0.36, exceeding expectations and reflecting a 12.5% increase year-over-year.

The company’s adjusted EBITDA also demonstrated significant growth, reaching $192.7 million, an 18.3% increase from the previous year. This improvement in adjusted EBITDA indicates Chewy’s effective management of its operations and cost efficiencies, despite the decrease in net margin from 2.3% to 2.0%. Chewy’s ability to maintain a strong adjusted EBITDA margin of 6.2% showcases its operational strength in a competitive market.

Chewy Optimistic on Growth Prospects for Remainder of Fiscal Year

Looking ahead, Chewy remains optimistic about its growth prospects for the remainder of fiscal year 2025. The company is focused on sustaining its momentum by enhancing customer engagement and expanding its product offerings. Chewy’s strategic initiatives include the introduction of new products and services, as well as improvements to existing ones, which are expected to drive further customer acquisition and retention.

Chewy’s management has outlined plans to navigate potential challenges in the macroeconomic environment, including supply chain disruptions and shifts in consumer behavior. By leveraging its strong supplier relationships and optimizing its fulfillment operations, Chewy aims to mitigate risks and maintain a steady supply of products to meet customer demand. Additionally, the company is committed to enhancing its technology infrastructure to support its growth and improve customer experience.

The company’s forward-looking statements highlight its confidence in achieving long-term profitability and market expansion. Chewy’s focus on delivering value to its customers, along with its strategic investments in technology and operations, positions it well to capitalize on opportunities in the evolving pet products market. As Chewy continues to build on its strong foundation, it remains committed to delivering sustainable growth and shareholder value.

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