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Chewy to Report Q2 Earnings: Essential Insights Ahead of the Report

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Key Takeaways

  • Chewy's Q2 performance likely boosted by digital upgrades, assortments and expansion efforts.
  • Autoship growth, healthcare services and Chewy+ launch are driving stronger customer adoption.
  • Net sales per active customer estimated at $589, up 4.2% from the prior-year quarter.

Chewy, Inc. ((CHWY - Free Report) ) is likely to report top and bottom-line growth when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for quarterly sales is currently pegged at $3.1 billion, showing a 7.8% increase from the year-ago quarter’s tally.

The consensus mark for earnings for the fiscal second quarter has been stable over the past 30 days at 33 cents a share. This reflects year-over-year growth of 37.5% from the year-earlier quarter.

This pet food and other pet-related supplier delivered an earnings surprise of 8.1%, on average, in the trailing four quarters. In the last reported fiscal quarter, Chewy recorded an earnings surprise of 2.9%.

Factors Likely to Impact Chewy’s Q2 Results

Chewy’s performance for the fiscal second quarter is likely to have benefited from its digital capabilities, product assortments and expansion efforts. Management has been making technology upgrades for its website and online platforms to drive sales. Resiliency in the pet category and strength in value proposition have been positive.

Higher product demand, robust consumer engagement and growth in active customers have been steadily contributing to its results. Continued expansion of Autoship subscriptions, the broader adoption of healthcare services like pharmacy and vet clinics and the full-scale launch of the Chewy+ paid membership program have been yielding.

Aforesaid factors are likely to have driven net sales per active customer and autoship customer sales in the quarter under review. The Zacks Consensus Estimate for net sales per active customer is presently $589, showing a rise of 4.2% from the year-earlier quarter.

On the flip side, a tough macroeconomic environment, including headwinds like inflationary pressures and tariffs remain concerning. These factors, coupled with any deleverage in selling, general and administrative expenses, are expected to have been deterrents in the quarter under review.

What the Zacks Model Unveils for CHWY

Our proven model does not conclusively predict an earnings beat for Chewy this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here as explained below. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Chewy currently an Earnings ESP of 0.00% and a Zacks Rank of 2.

Chewy Price and EPS Surprise

Chewy Price and EPS Surprise

Chewy price-eps-surprise | Chewy Quote

Stocks With the Favorable Combination

Here are a few companies, which according to our model, have the right combination of elements to come up with an earnings beat this reporting cycle:

Abercrombie & Fitch Co. ((ANF - Free Report) ) has an Earnings ESP of +2.62% and a Zacks Rank of 3. ANF’s earnings for the second quarter of fiscal 2025 are expected to decrease 9.2% on a year-over-year basis. The consensus mark for its quarterly earnings has moved up 0.9% to $2.27 per share in the past 30 days. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Abercrombie & Fitch’s quarterly revenues is pegged at $1.19 billion, which suggests growth of 4.8% from the figure reported in the prior-year quarter. ANF has a trailing four-quarter earnings surprise of 11.2%, on average.

The TJX Companies ((TJX - Free Report) ) currently has an Earnings ESP of +1.49% and a Zacks Rank of 3. TJX is likely to register a bottom-line increase when it reports second-quarter fiscal 2026 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $1.01 indicates an increase of 5.2% from the year-ago fiscal quarter’s reported number.

The TJX Companies’ top line is expected to improve from the prior-year fiscal quarter’s reported number. The consensus estimate for quarterly revenues is pegged at $14.07 billion, indicating growth of 4.5% from the prior-year fiscal quarter’s reported figure. TJX has a trailing four-quarter earnings surprise of 4.3%, on average.

DICK'S Sporting Goods ((DKS - Free Report) ) currently has an Earnings ESP of +1.13% and a Zacks Rank of 3. The company is expected to register a bottom-line decrease when it reports second-quarter fiscal 2025 results. The Zacks Consensus Estimate for quarterly earnings per share of $4.29 suggests a dip of 1.8% from the year-ago quarter.

The consensus mark for revenues is pegged at $3.60 billion, indicating a rise of 3.6% from the figure reported in the year-ago quarter. DKS has a trailing four-quarter earnings surprise of 5.6%, on average.

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