CHEWY’S STOCK IN FREEFALL: WILL IT RISE FROM THE ASHES?
Chewy Inc. (NYSE: CHWY) Hits a Rough Patch!
Hold onto your leashes! Chewy Inc. is facing a storm—its stock plunged by 2% over the last three months! But wait, it’s not all doom and gloom; the pet paradise wrapped up fiscal year 2024 on a surprisingly strong note. Can they turn this ship around? Let’s dig in!
Sales Shoot UP Like a Rocket!
Despite the stock struggle, Chewy just dropped some serious numbers! In Q4, their net sales skyrocketed nearly 15% year-over-year, jumping to a jaw-dropping $3.25 billion! This explosive growth is thanks to an influx of active customers, a resurgence in hard goods, and loyal Autoship customers filling up their carts with consumables and health and wellness goodies. Annual sales for 2024? A whopping $11.86 billion!
Hold your horses! The extra week in the fiscal year provided a $227 million boost, but even without that, sales grew nearly 7% in Q4! Talk about power moves! Adjusted earnings per share? They soared over 50% year-over-year, hitting $0.28 in Q4!
Chewy’s Performance: Better Than a Leeroy Jenkins Move!
During this nail-biting quarter, every key metric glimmered with success! Autoship sales took off with a 21% YoY increase to $2.62 billion, accounting for a staggering 81% of net sales! This means Chewy is raking in some reliable dough!
With an active customer base of 20.5 million—up 2.1% from last year—Chewy seems to have hit a growth inflection point. Get ready, folks! They expect even more growth in the coming year! Plus, net sales per active customer are climbing, now reaching $578 in Q4!
Chewy Vet Care Clinics: EXPLOSIVE Growth Ahead!
But wait, there’s more! Chewy’s network of Vet Care clinics is thriving! Eight new locations popped up, close to their goal of 4-8 openings. They’re eyeing 8-10 more clinics in FY2025, diving into the $25 billion vet services market. This is a game-changer for customer engagement!
A Tantalizing Forecast—Will Chewy Fly High Again?
Chewy is not letting up! They’re gearing up for an encouraging FY2025, anticipating net sales between $3.06-3.09 billion in Q1 and an astonishing $12.30-12.45 billion for the entire year. That’s about 6-7% growth on the horizon! And it’ll be fueled by new customers and minimal price increases.
So is Chewy on the verge of redemption? If they manage to keep growing with the active customer base steadily increasing, they might just shake off the stock blues. Adjusted EPS for Q1 2025 is projected to be between $0.30-0.35!
Don’t blink! Chewy is on the edge of something HUGE, and you won’t want to miss this rollercoaster ride!
