Chewy Inc. (NYSE:CHWY) has delivered an impressive Q4 earnings report, beating analyst expectations and demonstrating strong customer growth and revenue expansion. The online pet food retailer reported $124.5 million in adjusted EBITDA, surpassing Bloomberg's projections of $118.4 million.

Net Sales and Customer Growth Drive Strong Performance

Chewy’s net sales surged by 14.9% year-over-year to $3.25 billion for the quarter ending February 2. The retailer's growing customer base of 20.5 million active users played a pivotal role in this surge. This exceeded market forecasts and positioned Chewy for continued growth in 2025.

CEO Sumit Singh highlighted that strong active customer growth underpinned the quarter’s success. He expressed confidence in the company’s momentum heading into fiscal year 2025, reinforcing investor optimism.

Chewy’s Fiscal Year 2025 Outlook

For Q1 2025, Chewy anticipates net sales growth of 6%-7%, ranging between $3.06 billion and $3.09 billion, surpassing Wall Street’s $3.04 billion projection. The company’s per-share profit guidance falls between $0.30 and $0.35, aligning with analysts' expectations of $0.33.

For the full fiscal year 2025, Chewy expects sales to grow 6%-7%, reaching $12.30 billion to $12.45 billion. The company also forecasts core income margins of 5.4%-5.7%, indicating a stable profitability outlook.

Market Reaction and Investor Sentiment

Following the announcement, Chewy’s stock gained in premarket trading, signaling strong investor confidence in its performance. Analysts at Vital Knowledge noted that the earnings and forward guidance were in line with, or slightly ahead of, market expectations.

As Chewy continues to expand its customer base and revenue streams, investors are keen to see how the company sustains this momentum throughout fiscal 2025.

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