Chewy Inc. (NYSE:CHWY) is a prominent player in the online pet product retail industry. Known for its wide range of pet supplies, Chewy has carved a niche in the e-commerce sector. The company competes with other major retailers like Amazon and Petco, but its focus on customer service and subscription-based sales has set it apart.
On December 10, 2025, Chewy reported earnings per share (EPS) of $0.14, surpassing the estimated $0.12. This positive earnings surprise is part of a trend, as Chewy has exceeded consensus EPS estimates in three of the past four quarters. The company's revenue for the quarter was approximately $3.12 billion, exceeding the estimated $3.10 billion and reflecting an 8.1% increase from the previous year.
Chewy's growth is driven by a rise in unit volume rather than price hikes, indicating strong demand for its products. The number of active customers increased to 21.2 million, a nearly 5% year-over-year growth. This was achieved through more efficient marketing strategies and higher conversion rates. Autoship sales, crucial for predictability and cost efficiency, grew by 13.6% year-over-year to $2.61 billion.
The company's mobile app performance was robust, with app customers and orders increasing by 15% year-over-year. This growth was facilitated by enhancements in app functionality and a rise in direct traffic. Chewy Vet Care also exceeded expectations, further strengthening the company's market position. Despite a disappointing outlook for the fiscal fourth quarter, analysts remain optimistic, with a 12-month consensus target price of $44.97, a 26.5% premium over the current stock price.
Chewy's financial metrics provide insight into its valuation and performance. The price-to-earnings (P/E) ratio is approximately 69.58, indicating investor confidence in future earnings growth. The price-to-sales ratio is 1.14, and the enterprise value to sales ratio is 1.13, reflecting the company's valuation relative to its sales. However, the current ratio of 0.85 suggests that Chewy's current assets are not sufficient to cover its current liabilities, highlighting a potential area of concern.
