EarningsChewy reported net sales in line with expectations while beating estimates for adjusted EBITDA, driven by gross profit margin expansion and operating expense efficiencies.
Financial PerformanceChewy's forward margin trajectory is compelling and underestimated, with a realistic path to more than $750M in EBITDA next year, representing approximately 12% upside compared to consensus.
Growth InitiativesChewy opened two new vet clinics during the quarter with new customers showing favorable behavior, and bringing its total number of clinics to six, exceeding the low end of its full-year expectation.