Chewy Inc. (NYSE: CHWY) Earnings Report Analysis

• Chewy's earnings per share (EPS) of $0.14 fell short of the expected $0.33, impacting its stock price negatively.
• The company reported higher-than-expected revenue of $3.1 billion, surpassing estimates of $3.08 billion.
• Financial metrics such as a P/E ratio of approximately 44.86 and a debt-to-equity ratio of about 1.33 provide insights into Chewy's valuation and financial health.

Chewy Inc. (NYSE: CHWY) is a leading online retailer specializing in pet products and services, competing with giants like Petco and Amazon. On September 10, 2025, Chewy disclosed its earnings, revealing an EPS of $0.14, which was below the anticipated $0.33. Despite this, the company exceeded revenue expectations with $3.1 billion, outperforming the estimated $3.08 billion.

Despite the positive revenue figures, Chewy's stock has seen a decline, attributed to the earnings not meeting the high expectations of traders. Many investors had heavily invested in Chewy shares before the earnings update, anticipating a stronger performance. Consequently, the market's reaction has led to a decrease in Chewy's stock price, as highlighted by Barrons.

Chewy's financial results for the second quarter of fiscal year 2025 show a net sales increase of 8.6% compared to the same period last year. The company's gross margin improved by 90 basis points, reaching 30.4%. Chewy also reported a net income of $62 million, which includes share-based compensation expenses and related taxes of $79.1 million. These figures indicate a solid performance despite the stock's decline.

Chewy's financial metrics provide insight into its current standing. The company has a P/E ratio of approximately 44.86, indicating how much investors are willing to pay for each dollar of earnings. Its price-to-sales ratio is about 1.44, and the enterprise value to sales ratio is roughly 1.43. These ratios help assess the company's valuation relative to its sales.

Chewy's financial leverage is reflected in its debt-to-equity ratio of about 1.33. This ratio indicates the proportion of debt used to finance the company's assets. Additionally, Chewy's current ratio of approximately 0.80 suggests its ability to cover short-term liabilities with short-term assets. These metrics provide a comprehensive view of Chewy's financial health and operational efficiency.