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Chewy has been navigating a competitive pet e-commerce market, benefiting from strong customer loyalty and subscription-based sales but facing challenges from slowing consumer spending and rising costs.
Chewy, Inc (CHWY) shares fell 1.2% on Tuesday, ahead of its fourth-quarter earnings report before the markets open the next day.
The online retailer of pet food and pet-related products is expected to report adjusted sales of $3.2 billion, 13% higher than the year-ago quarter, according to estimates from Koyfin.
Adjusted earnings per share is estimated to rise 13.8% to $0.20.
Chewy has been navigating a competitive pet e-commerce market, benefiting from strong customer loyalty and subscription-based sales but facing challenges from slowing consumer spending and rising costs.
The company has of late focused on expanding its product offerings.
Chewy is pushing to grow its Autoship program, which allows users to schedule recurring deliveries of pet supplies. Last year, it ventured into veterinary practice with the launch of pet clinics.
Owing to some of these initiatives, the company in December raised its sales and core profit forecast for 2024.
In recent months, Morgan Stanley raised its price target on the company's shares to $40 from $38, and Evercore ISI bumped the rating to 'outperform'.
On Stocktwits, the sentiment for CHWY jumped to 'extremely bullish' from 'bullish' a day prior, and message volume rose 177%.
A user noted increased retail attention in the stock in the past week, while another said Chewy is one of the retailers immune to Donald Trump's recent trade tariffs.
CHWY shares ended at $33.61 on Tuesday, similar to the price level at the start of the year.
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