Latest news with #Autoship
Miami Herald
13-07-2025
- Business
- Miami Herald
Online pet retailer teams up with popular lifestyle brand
During the early years of the pandemic, when food supply chains and deliveries were uncertain, I was most worried about one thing for my household: dog food. "I am willing to go hungry, but our dog will not," I told my husband, who agreed. Don't miss the move: Subscribe to TheStreet's free daily newsletter Thankfully no one went hungry, but thus began the frantic checking of our dog food subscription order. It had easily been a set-it-and-forget-it option before deliveries were uncertain, but now I bumped up each delivery to ensure I always had extra on hand. Related: Famous sporting goods chain makes drastic change worth millions There's no doubt that hitting the "subscribe" button on a regular order makes sense for consumers. It automates the task, plus it usually saves some money. It's even better for online retailers that can count on a regular infusion of money from pet parents. But there is a catch. Subscriber convenience can come at a cost for the retailer. Purchases made on autopilot can keep customers away from retail websites completely, which means they won't add more to their carts. Unless I get a text or email that there's a sale, I don't really go to the Chewy (CHWY) site to browse or buy anything else. My Lab mix (who incidentally doesn't like to retrieve or even play with toys) doesn't need much outside of his regular food, treats, and poop bags, all of which arrive like clockwork every six weeks or so. Loyalty programs, including the Autoship subscription, have made me a happy customer for years. These subscriptions, plus the paid Chewy+ program that offers free shipping, rewards, and other perks, have been driving the retailer's sales, Customer Experience Dive reports. But that didn't necessarily lead to great news for the company's stock last quarter, when analysts downgraded its shares to neutral from outperform. One way to drive bigger sales would be to get customers to think outside the subscription box. And a newly announced collaboration could be just the thing to lure even loyal customers like me out of complacency. Image source: Nagle/Bloomberg via Getty Images Chewy's recently unveiled partnership with positive lifestyle brand Life Is Good caught my attention. I've long been a fan of Life is Good apparel. I love the cheery messages, the colorful apparel and, most importantly, the stick figure mascot named Jake, who coincidentally shares the same name as my beloved pup. (Life is Good's Jake has his own dog named Rocket, who is also emblazoned on many products.) "Animals are naturally optimistic, which is one of the things we love most about them. Bringing our pet-themed products to Chewy enthusiasts nationwide feels like a natural fit as we look to continue our mission of spreading the power of optimism," says Life is Good Vice President of Wholesale Yasmina Mokraoui in a company statement. "We are equally excited for Chewy's customers to experience Life is Good's positive energy through products designed specifically for the pets they love." Related: Walmart and Nike: the collab no one asked for These days, we can use all the optimism and positive energy we can get. This new collab has spurred me to do something I haven't done in quite some time, which is to browse the Chewy website. I went straight for the Life is Good section and added a few things to my cart - a new leash, an extra water bowl, and a couple of T-shirts for me and my husband. (And yes, I checked on my subscription order while I was there, too. All good.) More retail: Ulta Beauty makes surprise huge expansionLuxury outdoor brand suddenly closes popular locationAmazon Prime gets bad news amid alarming customer issue The pet products onChewy's website are from Life is Good's 2025 line of products, and the human products and apparel can also be found on Life is Good's site. The Life is Good partnership team is currently at work on the pet line for 2026. The collab seems to be a good fit for pet parents. And it's a positive move for Chewy's bottom line to attract new customers as well as get current subscribers to spend more. But only time - and Q3 results - will tell if this collaboration is truly successful for Chewy. Related: T-Mobile announces wild new offer to keep customers from leaving The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
Yahoo
08-07-2025
- Business
- Yahoo
Is Chewy's 6.2% Q1 EBITDA Margin a Turning Point Toward Its Target?
Chewy CHWY reported a 6.2% adjusted EBITDA margin in the first quarter of fiscal 2025, expanding 50 basis points year over year. Adjusted EBITDA rose 18.3% to $192.7 million from $162.9 million a year ago. These results highlight Chewy's disciplined execution and its progress toward long-term profitability improvement was driven by a focus on high-margin, recurring revenue streams, particularly the Autoship program. Chewy also expanded its sponsored ads business, which remains the largest contributor to margin gains. Together, these initiatives have shifted the sales mix toward more profitable categories and improved margin discipline further supported the company's performance. SG&A was held at 18.5% of net sales, reflecting tight cost control, while the timing of marketing campaigns delivered modest leverage in the first quarter. Adjusted earnings per share increased 12.9% year over year to 35 cents, underscoring consistent bottom-line growth alongside margin reaffirmed its 2025 adjusted EBITDA margin outlook of 5.4-5.7%, with the mid-point implying a 75-basis-point improvement from that reported in 2024. Approximately 60% of this expansion is expected to come from gross margin gains, with the rest from operating leverage. Chewy also expects to convert about 80% of adjusted EBITDA into free cash flow for the first quarter is typically the most profitable quarter of the year, management expressed confidence in achieving its long-term adjusted EBITDA margin goal of 10%. Reaching the mid-point of 2025 guidance will already mark a 220-basis-point improvement over the past two years, demonstrating steady progress toward this target. Central Garden & Pet CENT showcased resilient margin performance in second-quarter fiscal 2025 despite a 7% revenue drop to $833.5 million. Cost and Simplicity initiatives expanded Central Garden & Pet's gross margin by 180 basis points to 32.8%, with adjusted earnings per share rising to $1.04 from 99 cents in the prior year period. Central Garden & Pet reaffirmed its full-year EPS guidance of $2.20 or higher, showing confidence despite macroeconomic Health and Wellness Company, Inc. WOOF in first-quarter fiscal 2025 focused on restoring profitability through disciplined execution. The gross margin expanded 30 basis points to 38.2%, aided by Petco Health and Wellness' better pricing, cost control and productivity gains in services. Petco Health and Wellness' adjusted EBITDA margin improved 105 basis points to 6%. Shares of Chewy have gained 23.3% year to date compared with the industry's growth of 7.4%. Image Source: Zacks Investment Research From a valuation standpoint, CHWY trades at a forward price-to-sales ratio of 1.33X, below the industry's average of 2.02X. It has a Value Score of B. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CHWY's fiscal 2025 earnings implies year-over-year growth of 23.1%, whereas the same for fiscal 2026 indicates an uptick of 19.5%. Estimates for fiscal 2025 and 2026 have been upwardly revised by five cents and one cent, respectively, over the past 30 days. Image Source: Zacks Investment Research CHWY currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Central Garden & Pet Company (CENT) : Free Stock Analysis Report Petco Health and Wellness Company, Inc. (WOOF) : Free Stock Analysis Report Chewy (CHWY) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
Yahoo
14-06-2025
- Business
- Yahoo
Why Chewy Stock Was Diving This Week
The pet care specialist published its first quarterly earnings report for this year. It topped analyst expectations for both revenue and profitability, but the beats were hardly overwhelming. 10 stocks we like better than Chewy › A badly received quarterly earnings report was the major news item exerting gravity on Chewy (NYSE: CHWY) stock over the past few days. As a result, according to data compiled by S&P Global Market Intelligence, the company's share price had slumped by almost 15% week-to-date as of Thursday evening. That sell-off happened even though Chewy actually topped analyst estimates for revenue and profitability, albeit not by vast amounts. In its first quarter, the company managed to grow its net sales by more than 8% year over year to $3.1 billion, while its non-GAAP (adjusted) net income improved at a slightly higher rate to just under $149 million ($0.35 per share). Analysts had collectively been modeling a bit below $3.1 billion on the top line and $0.32 per share for adjusted profitability. While those aren't bad numbers at first glance, Chewy is an expensive stock to own; even after the post-earnings sell-off it was trading at a rich forward P/E of almost 36. For more than a few investors, that's awfully pricey for a company posting single-digit percentage improvements, and at thin profit margins to boot. Meanwhile, as analysts tracking a stock often do, several pundits following Chewy adjusted their takes on the stock. Most of these adjusters raised their price targets, but there were several less bullish updates, too. One was published by Mizuho's David Bellinger, who now feels Chewy is worth $44 per share, down from his previous $47. He maintained his neutral recommendation on the stock. It's hard to ignore how pricey this stock is at the moment, and to some degree that's a shame. Chewy has been posting good results from its Autoship program lately, a feature that still has plenty of potential to boost valuable recurring revenue. I'm not necessarily hot on this stock, but there might be some upside to it if it can post more convincing quarterly earnings beats. Before you buy stock in Chewy, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Chewy wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $655,255!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $888,780!* Now, it's worth noting Stock Advisor's total average return is 999% — a market-crushing outperformance compared to 174% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. Why Chewy Stock Was Diving This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
11-06-2025
- Business
- Yahoo
Chewy has quick reaction time to supply chain disturbances: CEO
Online pet retailer Chewy (CHWY) may have topped first quarter earnings and revenue estimates, but its stock is down Wednesday morning after missing guidance forecasts. Chewy CEO Sumit Singh joins Wealth host Brad Smith and Yahoo Finance executive editor Brian Sozzi to talk about the brand's exposure to China, its supply chain, and the buying behaviors Chewy is seeing from its consumers. To watch more expert insights and analysis on the latest market action, check out more Wealth here. Good to see you. Uh it's been a while. Definitely going to touch upon earnings, but really the story of this morning has been, well, looks to be some form of framework with China on trade. Now you're a retailer, you source some hard goods from China. As the CEO of a company like that, does it make you feel more confident in your outlook for this year? Hey, Brian. Nice to be here. Nice to see you also. So, Brian, I think it's important to remember that for Chewy, you know, about 85% of our sales comes from repeatable non-discretionary categories like consumables and healthcare. Uh I think an additional data point that is super supportive of our revenue flywheel is the fact that 82% of our net sales this quarter came from our co-subscription product called Autoship. And so what that, if you put the two data points together, what that says is that our exposure to a non-discretionary, and as a subset of that China is, you know, lower, much lower compared to perhaps the rest of the industry. Uh, you know, and so in that way, it puts us in a relatively well-insulated position to handle the year and we're using the strong balance sheet that we have to be able to obviously position ourselves uh to mitigate any sort of material impact, you know, on the income statement. And so we feel very good coming out of Q1, having delivered the results that we just have, you know, growing two times the market and super bullish about what's what's what the rest of the year has for us. Sumit, a lot of retail executives or CEOs that I talk to, they've spent a good chunk of their year figuring out ways or ways to dismantle supply chains in China that have been there, in some cases, decades. Have you had to do that with your team and, and if so, where have you moved product to? Yeah, I think the composition, the revenue composition of the business matters a lot, right? So that's the first point that I'm making that in our case, the composition of the revenue, you know, it puts us in a position of perhaps better insulation. Number two, the quality and, uh, you know, the expanse of the supply chain matters a lot. So, you know, through the pandemic, look, you've known Chewy for a long time. We've grown from a less than $2 billion retailer in 2017 to an over $12 billion retailer, you know, seven years later. And so when a company grows that quickly, that fast, you have to rebuild your supply chains along the way. And, you know, I'm very proud to say that we have a very high quality team and a sophisticated supply chain and operations network that is very well connected internationally, domestically and provides us the opportunity to be able to react. So not only are we long-term focused, but our ability to react in the short term is also really good. So we kind of, you know, in anticipation of the way the supply chains are going to react, you know, we've essentially made the changes that we had to make in inventory buying, inventory placement. So that from a customer impact point of view and from a P&L point of view, we are able to insulate and sort of minimize that disruption. So I think, I think those are the two points that I would focus on for the most part. Sumit, Brad here and, and great to have you on the program with us. You know, as you think about the growth that's offsetting some of the churn, which is improving as you were mentioning on the call as well, I wonder what you're seeing in the average purchasing strength across some of those newer customers knowing where they're pushing back on prices elsewhere for household goods or services. Yeah, it's a very good point. So first of all, look at the revenue composition in terms of customer algorithm. So our revenue of 8%, 8.3% to be specific, was driven by a combination of net adds increasing about half of that, and then the other half was covered by share of wallet increase. And so, and, and pricing, right, or inflation is relatively non-existent in the system in Q1. So first of all, the composition of revenue growth is all structural and fundamentals. Number two, when you compare the Q1 cohort for 25. So let's say new customers or gross additions that we brought on to the platform. So we're measuring their quality in terms of two core metrics. A, the amount of NES pack or net sales per active customer on the platform. And two, also driven by their reorder rates, right? So both are important. So get the customer that is higher quality and then see if you can sustain the ordering rate. On both these metrics, we're seeing, you know, low single digit higher performance from the cohorts that we're picking up now on a year-over-year basis that gives us the confidence that this consumer, right, isn't really trading down. This is a higher quality consumable consumer being picked up in repeatable categories and therefore should sustain kind of forward demand momentum. Sumit, we're watching the course stock. It's getting hit on these results. Now you reaffirmed your full year margin outlook, but on the conference call you mentioned that the first quarter may represent the high mark for the business, may see some sequential declines. How has the business started in the second quarter and have you seen a more cautious consumer given everything going on in the economy? We haven't at Chewy. We're, you know, the momentum that we've carried out of Q1 actually has continued. In fact, you know, it's just the shape of the curve. So the first quarter, you know, at 6.2% EBITDA margins, you know, for the first time company crossed the 6% mark. So we're very, very happy about, very proud about that. And then broadly, you know, we've guided to a midpoint of roughly five and a half percent EBITDA margins for this year that would put us at about a 70 basis point, 75 basis point expansion from a year-over-year perspective. Plus, you know, for Q2 sequentially, we've guided, you know, a higher gross margin rate as well. You know, so regardless of how you piece apart the income statement, you know, our ability to deliver both growth as well as deliver profitability, and we're going to convert 80% of that profitability into free cash flow because if you analyze our balance sheet, we're essentially guiding roughly plus $550 million of free cash flow at the midpoint. And so, you know, all of these are super encouraging metrics for investors to consume and for us to execute around. Sumit, great to have you here on the program with us, Chewy CEO, Sumit Singh, and our very own executive editor, Brian Sozzi. Thank you. Take care, guys. Thank you. Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
Chewy (NYSE:CHWY) Reports Q1 Earnings With US$3M Sales and Flat EPS
Chewy recently reported earnings results showing increased sales to USD 3.1 million, but a slight decline in net income, which could have influenced its 38% price rise over the last quarter. During this time, executive transitions, such as CFO David Reeder's departure, and an extended credit agreement provided broader strategic context. The market backdrop of easing trade tensions and positive economic signals likely supported this upward trend. The backdrop of strong market conditions may have outweighed any reservations arising from Chewy's static earnings per share, indicating that broader market optimism played a critical role in the company's share price movement. Buy, Hold or Sell Chewy? View our complete analysis and fair value estimate and you decide. AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. The recent developments at Chewy, including a significant executive transition and a new credit agreement, are expected to influence its growth strategy by potentially enhancing financial flexibility and operational focus. These shifts, alongside the easing trade tensions and positive economic signals, might have contributed to the company's impressive 38% share price rise last quarter. Long-term shareholders have seen substantial gains, with a total return of 100.39% over the past year, indicating a robust recovery in its stock despite earnings challenges. The strategic initiatives aimed at expanding vet care clinics and enhancing the ad platform are anticipated to drive future revenue growth. However, the slight decline in net income despite rising sales could cast some uncertainty on future earnings, as analysts forecast earnings to reach US$435.7 million by 2028. Potential risks such as reliance on the Autoship program and slow customer acquisition could affect these projections. Though Chewy's current share price of US$38.17 shows an upward trend, it remains below the consensus price target of US$42.13, suggesting potential room for future growth if earnings align with expectations. However, given the company's higher-than-average PE ratio, its valuation continues to be a point of consideration. Our valuation report here indicates Chewy may be overvalued. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:CHWY. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ Sign in to access your portfolio
