Why Is Chewy Stock Gaining Pre-Market Today?
Synopsis
The company’s adjusted earnings rose to $0.32 per share, while analysts expected it to post $0.30 per share.
- Chewy’s net sales per active customer rose to $595 for the fiscal third quarter, compared with $567 a year earlier.
- Its net active customers grew to 21.2 million, compared with 20.2 million.
- The company forecast adjusted earnings between $0.24 and $0.27 per share for the fourth quarter, while analysts expected $0.29 per share.
Chewy (CHWY) stock gained 3.5% in premarket trading on Wednesday after the pet food retailer’s fiscal third-quarter earnings topped Street estimates.
The company’s adjusted earnings rose to $0.32 per share, while analysts expected it to post $0.30 per share. Its net sales of $3.12 billion also topped analysts’ expectations of $3.10 billion.
Customer Count Grows
Chewy’s net sales per active customer rose to $595 for the fiscal third quarter, compared with $567 a year earlier. Its net active customers grew to 21.2 million, compared with 20.2 million. However, its gross margin dipped to 29.8% from 30.4%.
“Chewy continues to outperform the pet category and expand market share, with profits once again growing faster than sales,” said Chewy CEO Sumit Singh.
Weak Q4 Earnings Forecast
The company forecast adjusted earnings between $0.24 and $0.27 per share for the fourth quarter, while analysts expected $0.29 per share, according to Fiscal.ai data. Its fourth-quarter net sales are projected to be between $3.24 billion and $3.26 billion, the midpoint being slightly below analysts’ projections.
Singh added in a conference call with analysts that 2026 might be similar to 2025, but the company will wait till next year before revealing a projection.
What Are Stocktwits Users Thinking?
Retail sentiment on Stocktwits about Chewy jumped to ‘extremely bullish’ territory from ‘bullish’ a day ago.
One user hailed the earnings as strong and opined that the stock has moved in the wrong direction.
Chewy stock has gained over 4% this year.
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