Chewy selloff on CFO exit ‘gift for investors,’ says Mizuho

Mizuho believes Chewy’s (CHWY) reiterated Q1 financial guidance could reduce the likelihood of a fiscal 2025 guidance raise despite what should be another quarter of strong net active customer gains. The firm views the departure of CFO David Reeder as somewhat surprising ahead of the company appearing at an industry conference on Wednesday. After speaking with the company, the analyst is still confident in Mizuho’s recently raised Q1 revenue forecast sitting above guidance. The selloff on the news is a “gift for investors,” contends the firm. It expects Chewy to attract a high-quality replacement for Reeder now that the business “is in a much more attractive place” given recent developments. Mizuho believes Chewy’s revenue growth trends are accelerating, its profitability measures are delivering on automation, and the company has an early stage advertising business.