Chewy Inc. (NYSE:CHWY) on Wednesday reported downbeat sales for the second quarter but raised its full-year outlook.
Chewy reported adjusted earnings of 36 cents per share, matching the consensus estimate and management’s guidance of 36 cents. Sales rose 7.3% year over year to $3.33 billion, slightly below the $3.361 billion consensus estimate.
Chewy expects third-quarter sales of $3.323 billion to $3.358 billion, compared with the $3.332 billion consensus estimate. It forecast an adjusted EBITDA margin of 6.6% to 6.7%.
The company raised its fiscal 2026 sales outlook to $13.46 billion-$13.57 billion from $13.4 billion-$13.55 billion. Wall Street expects $13.553 billion. Chewy also lifted its adjusted EBITDA margin forecast to 6.7%-6.8% from 6.6%-6.8%.
Sumit Singh, Chief Executive Officer of Chewy said, “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, while continuing to invest in compelling opportunities that deepen customer engagement and create long-term shareholder value.”
Chewy shares fell 1.5% to $20.44 in pre-market trading.
These analysts made changes to their price targets on Chewy following earnings announcement.
- Evercore ISI Group analyst Mark Mahaney downgraded the stock from Outperform to In-Line and announced a $25 price target.
- Baird analyst Justin Kleber maintained the stock with an Outperform rating and cut the price target from $30 to $28.
- Rosenblatt analyst Scott Devitt maintained the stock with a Neutral and lowered the price target from $25 to $24.
Considering buying CHWY stock? Here’s what analysts think:
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