Chewy (CHWY) Stock Forecast & Price Target

Chewy, the largest e-commerce petcare retailer in the U.S., generated $11.9 billion in sales for fiscal 2024, showcasing robust financial performance across multiple product categories including pet food, treats, hard goods, and pharmacy. The company experienced a quarterly increase of approximately 150,000 active customers in Q2, leading to a total of 20.9 million, while the net sales per active customer rose by 5% year-over-year to $591, indicating strong customer engagement and retention. With an expanded EBITDA margin of 5.4% to 5.7% and an optimistic raised full-year revenue outlook, Chewy is positioned well to capitalize on stable market conditions and continued pet spending growth.

Chewy operates as the largest e-commerce petcare retailer in the United States, reporting $11.9 billion in sales for fiscal 2024, but faces challenges such as supply chain volatility that may lead to missed revenue opportunities and pressure on gross margins. The company’s downside risk scenario suggests that continued disruptions and customer churn from the pandemic could result in permanent customer losses, hindering top-line growth. Additionally, as competition intensifies within the pet e-commerce sector, slower penetration rates could jeopardize Chewy's premium market positioning in the coming months.