Chewy (CHWY) Stock Forecast & Price Target

Chewy, the largest e-commerce petcare retailer in the U.S., achieved significant financial milestones in fiscal 2024 with $11.9 billion in sales, buoyed by a notable increase in active customers to 20.9 million—an addition of approximately 150,000 quarter-over-quarter, surpassing consensus estimates. The company's net sales per active customer rose by 5% year-over-year to $591, highlighting strong customer engagement, complemented by a 15% year-over-year growth in autoship sales and structural improvements in hard goods. Furthermore, Chewy's management raised their full-year revenue outlook, predicting growth between 5.4% and 6.2%, aided by strategic investments in vet clinics and a stable pet care industry contributing to overall growth expectations.

The financial outlook for Chewy indicates potential challenges stemming from ongoing supply chain volatility, which could hinder revenue growth and impact gross margins negatively. Additional concerns arise from competitive pressures within the e-commerce petcare sector that may lead to a slowdown in industry growth, exacerbating the company's risks associated with customer churn and eventual revenue losses. Furthermore, Chewy's premium market positioning may be threatened by shifting consumer trends, which could further complicate the company's growth trajectory in the near term.