Chewy's first quarter results show strong sales growth, increased customer engagement, and operational efficiency with notable success in the AutoShip program, sponsored ads, and Chewy Vet Care expansion. However, concerns about one-time item impacts on prior year results, anticipated declines in adjusted EBITDA margin, and potential tariff impacts temper the outlook.

Company Guidance -

Q4 2024

During Chewy, Inc.'s First Quarter 2025 earnings call, a variety of metrics were presented to highlight the company's performance and guidance. Net sales for Q1 2025 increased by over 8% to $3.12 billion, surpassing the high end of guidance. Key drivers included a 12.3% year-over-year growth in hard goods and a record high in auto-ship customer sales, which rose by nearly 15% to $2.56 billion, representing 82% of total net sales. Active customers grew to 20.8 million, marking a 3.8% increase from the previous year. The company achieved a gross margin of 29.6%, with a year-over-year expansion of 60 basis points when adjusted for one-time items from the previous year. Adjusted EBITDA was reported at $192.7 million, reflecting a margin of 6.2% and a 50 basis point increase from the previous year. Looking forward, Chewy maintained its full-year 2025 net sales outlook of $12.3 billion to $12.45 billion, projecting 6% to 7% growth after adjusting for the 53rd week in fiscal 2024. The adjusted EBITDA margin for the full year is anticipated to be between 5.4% and 5.7%, with about 60% of margin expansion driven by improvements in gross margin. The company also expects 80% of adjusted EBITDA to convert into free cash flow for the year, translating to approximately $550 million. Chewy's strategic initiatives, including the Chewy Vet Care expansion and the Chewy Plus membership program, are expected to drive long-term growth and customer loyalty.

Record First Quarter Net Sales

Q1 net sales exceeded the high end of guidance, growing by over 8% to $3.12 billion, supported by strong participation from new and existing customers.

Significant Growth in AutoShip Program

First quarter AutoShip customer sales reached $2.56 billion, representing approximately 82% of Q1 net sales and a 14.8% increase from the previous year.

Increase in Active Customers

Chewy ended Q1 with 20.8 million active customers, reflecting a 3.8% year-over-year growth and an increase of approximately 240,000 customers sequentially.

Adjusted EBITDA Growth

Chewy generated $192.7 million of adjusted EBITDA, representing a 6.2% adjusted EBITDA margin and a year-over-year increase of approximately 50 basis points.

Chewy Vet Care Expansion

Three new Chewy Vet Care practices were opened, bringing the total to 11 across four states, and plans to open 8 to 10 new clinics in fiscal year 2025.

Successful Sponsored Ads Business

Sponsored ads business grew sequentially, benefiting from the migration to a first-party platform, including the expansion of off-site ads.

Chewy (CHWY) Earnings, Revenues Date & History

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CHWY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 27, 2025	2025 (Q2)	0.14 / -	0.68	―	―	―
Mar 26, 2025	2024 (Q4)	0.03 / 0.05	0.07	-28.57% (-0.02)
Dec 04, 2024	2024 (Q3)	0.06 / 0.01	-0.08	112.50% (+0.09)
Aug 28, 2024	2024 (Q2)	0.02 / 0.68	0.04	1600.00% (+0.64)
May 29, 2024	2024 (Q1)	0.04 / 0.15	0.05	200.00% (+0.10)
Mar 20, 2024	2023 (Q4)	-0.04 / 0.07	0.01	600.00% (+0.06)	―
Dec 06, 2023	2023 (Q3)	-0.06 / -0.08	0.01	-900.00% (-0.09)	―
Aug 30, 2023	2023 (Q2)	-0.05 / 0.04	0.05	-20.00% (-0.01)	―
May 31, 2023	2023 (Q1)	-0.04 / 0.05	0.04	25.00% (+0.01)	―
May 04, 2023	2025 (Q1)	0.17 / 0.15	0.15	0.00% (0.00)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

CHWY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Mar 26, 2025	$33.61	$33.25	-1.07%
Dec 04, 2024	$33.62	$33.47	-0.45%
Aug 28, 2024	$25.86	$28.72	+11.06%
May 29, 2024	$16.91	$21.50	+27.14%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.