Chewy Reports Decline in Profit Despite Increased Sales
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Sep 10 2025
0mins
Should l Buy CHWY?
Source: WSJ
Profit Decline: Chewy reported a profit of $62 million for its fiscal second quarter, a significant drop from $299.1 million in the same quarter last year.
Sales Growth: Despite the decline in profit, the online pet-supplies retailer experienced an increase in sales and continued to add new customers.
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Analyst Views on CHWY
Wall Street analysts forecast CHWY stock price to rise
20 Analyst Rating
17 Buy
3 Hold
0 Sell
Strong Buy
Current: 25.880
Low
42.00
Averages
47.06
High
52.00
Current: 25.880
Low
42.00
Averages
47.06
High
52.00
About CHWY
Chewy, Inc. is an e-commerce business geared toward pet products and services. The Company’s products consist of pet food and treats, pet supplies and pet medications, other pet-health products, and pet services. It serves its customers through its retail websites, and its mobile applications and focuses on delivering customer service, competitive prices, convenience, including Chewy’s Autoship subscription program, and a range of pet food, treats and supplies, and pet healthcare products and services. It partners with approximately 3,200 of the brands in the pet industry, and it creates and offers its own private brands. It owns a number of trademark registrations and applications in the United States and in foreign jurisdictions. These trademarks include American Journey, Blue Box Event, Careplus, Chewy, Chewy.com, Chewy Vet Care, Dr. Lyon’s, Frisco, Goody Box, Onguard, PetMD, PracticeHub, Tiny Tiger, True Acre Farms, Tylee’s, Vibeful, and The Zoo.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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See More
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See More
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- Stock Price Surge: Following the positive news, the stock price rose 15% in the afternoon of March 26, 2026, indicating increased investor confidence in the company's future growth prospects.
- Positive Market Reaction: Analysts generally maintain an optimistic outlook on the company's prospects, anticipating continued growth in the coming quarters, which could further drive stock price appreciation.
- Successful Strategic Adjustments: The company's adjustments in product lines and market strategies have yielded significant results, strengthening its position in a competitive market and signaling sustainable long-term growth potential.
See More
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- AI and Wealth Creation: Discussions on whether AI could create the world's first trillionaire highlight the immense economic potential of technological advancements, capturing investor interest.
- Unique Market Position: A new report identifies a little-known company as an 'Indispensable Monopoly' providing critical technology needed by Nvidia and Intel, underscoring its significance and growth potential in the industry.
- Investment Recommendation Update: The Motley Fool's analyst team has identified 10 top stocks for investors, with Chewy not making the cut; however, the recommended stocks are expected to yield substantial returns in the coming years, reflecting the ongoing pursuit of quality investment opportunities.
See More
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- Emerging Employee Trend: As U.S. companies mandate a full return to office, pet care is increasingly recognized as a vital short-term support service, with approximately 59 million Americans providing family care in 2024, highlighting the strong demand for pet care.
- Significant Absenteeism Impact: A survey by Wagmo reveals that 75% of pet owners missed work due to pet care issues in the past year, with 26% missing six or more days, indicating a direct impact on employee productivity.
- Expanded Corporate Benefits: Wellthy introduced pet care into its back-up services in 2024, with around 50% of clients offering this benefit, showcasing innovation and adaptability in employee welfare aimed at enhancing satisfaction and retention rates.
- Context of Caregiving Crisis: While pet care may not be the most urgent need, Wellthy's service expansion aligns with the founder's personal caregiving experiences, aiming to alleviate financial and emotional stress for families, thereby improving overall workplace productivity.
See More
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- Earnings Highlights: Chewy reported a 0.5% year-over-year revenue growth in Q4, reaching $3.26 billion, which, while slightly below analyst expectations, reflects a stable customer base with active customers increasing by 4% to 21.3 million.
- Margin Expansion: The company's gross margin improved by 90 basis points to 29.4%, and adjusted EBITDA margins rose from 3.8% to 5%, leading to a 30.4% increase in adjusted EBITDA to $162.3 million, indicating enhanced operational efficiency.
- Future Guidance: Chewy anticipates full-year revenue between $13.6 billion and $13.75 billion, representing growth of 8% to 9%, with adjusted EBITDA projected between $900 million and over $930 million, reflecting a growth rate of 20% to 29%, showcasing confidence in future market conditions.
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See More
