By Kelly Cloonan
Chewy is set to post its third-quarter results Wednesday before the market opens. Here's what you need to know.
PROFIT: Chewy is expected to post a quarterly profit of $52.2 million, or 12 cents a share, according to analysts surveyed by FactSet. This compares with $3.9 million, or 1 cent a share, for the same period a year earlier.
ADJUSTED EARNINGS: The online pet-supplies retailer is projected to report adjusted earnings per share of 30 cents, compared with 20 cents in the year-ago period.
REVENUE: Chewy is projected to report $3.1 billion in revenue, compared with $2.88 billion in the same period a year ago, according to analysts polled by FactSet.
The stock has fallen 18% in the past three months and was recently trading at $34.33.
WHAT TO WATCH
-In September, Chewy said it expected a more dynamic second half of the year as it planned to step up its investments, denting some of its profit to avoid price increases and grow its private-label brands. Analysts will be watching to see if the company's strategy led to market-share gains as planned, and whether management plans to shift its approach going forward.
-Analysts will also be keeping an eye on Chewy's active customers, which should grow toward the high end of the low-single-digit range as the company leans into growth initiatives and marketing to support market share gains, JPMorgan analysts said in a note. They project active customer net adds of 160,000 on a sequential basis, though point out that third-party data suggest website visits declined double-digit in the quarter with softness in November.
-Wall Street expects net sales per active customer will rise in the quarter, as existing customers spend more on Chewy's products while new customers continue to spend at higher rates, Raymond James analysts said. The metric has a long history of increasing, and while strength in active customer growth could create lumpiness, it likely remains a reliable long-term growth driver, the analysts said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
December 09, 2025 13:15 ET (18:15 GMT)
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