Chewy Inc. (NYSE:CHWY) reported second-quarter adjusted earnings in line with analyst expectations on Wednesday, while revenue came in slightly above consensus and the company raised its full-year revenue and profitability outlook.
Adjusted earnings per share were $0.36, matching the analyst consensus estimate. Net sales increased 7.3% year over year to $3.33 billion, compared with the analyst forecast of $3.32 billion.
Excluding contributions from the SmartPak and Modern Animal acquisitions, net sales increased 5.7% from the prior-year period.
Chewy shares rose 0.8% following the announcement.
“Chewy delivered a strong second quarter, with growth of 7.3% to $3.33 billion of net sales at the high end of our guidance, and a 6.8% Adj. EBITDA margin, exceeding our expectations,” said Sumit Singh, Chief Executive Officer. “The durability of our recurring revenue base, continued customer growth, and disciplined execution give us confidence to raise our full-year revenue and profitability outlook.”
Adjusted EBITDA rises to $226.7 million
Adjusted EBITDA increased by $43.4 million year over year to $226.7 million. Adjusted EBITDA margin expanded by 90 basis points to 6.8%.
Net income was $80.5 million, or $0.20 per diluted share, compared with $62.0 million, or $0.14 per diluted share, in the same quarter last year.
Gross margin was unchanged year over year at 30.4%.
Chewy reported 21.7 million active customers, an increase of 3.8% from the prior-year period.
Autoship customer sales rose 9.3% to $2.82 billion and accounted for 84.6% of total net sales.
Chewy forecasts Q3 revenue of $3.32 billion-$3.36 billion
For the third quarter, Chewy expects revenue of between $3.32 billion and $3.36 billion. The midpoint of $3.34 billion compares with the analyst consensus estimate of $3.33 billion.
For fiscal 2027, the company forecasts revenue of between $13.46 billion and $13.57 billion.
The midpoint of the full-year range is $13.515 billion, compared with the consensus forecast of $13.48 billion.
Chewy stock price
