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Chewy posts 7.4% revenue growth and raises full-year guidance
Autoship, the source of recurring sales, made up 84.6% of Chewy’s quarterly revenue, and the company lifted its outlook slightly above consensus.
Chewy delivered 7.4% revenue growth to $3.33 billion and raised its full-year guidance, supported by strength in its Autoship program, according to MarketBeat Ratings.
The outlet said Autoship accounted for 84.6% of sales, up 160 basis points year over year, reinforcing Chewy’s recurring-revenue model centered on regular pet necessities.
MarketBeat Ratings also pointed to flat gross margin despite economic headwinds and improvements in adjusted margins, alongside mid-to-high-single-digit growth in adjusted EBITDA and adjusted net income, while adjusted earnings were affected by a reduced share count.
Looking ahead, Chewy expects continued strength and guided revenue and earnings to a range slightly above consensus, while MarketBeat Ratings noted the key risk is investor sentiment rather than operating deterioration.