Chewy Inc. (NYSE:CHWY) Quarterly Earnings Preview

• Chewy Inc. (NYSE:CHWY) is set to release its quarterly earnings with an estimated EPS of $0.21 and projected revenue of $3.2 billion.
• The company faces margin pressure but benefits from a steady stream of recurring revenue through its auto-ship service.
• Financial metrics such as a P/E ratio of 34.87, and a debt-to-equity ratio of 2.29 highlight valuation and financial leverage concerns.

Chewy Inc. (NYSE:CHWY) is a prominent online retailer specializing in pet products. The company is known for its extensive range of pet supplies, including food, toys, and healthcare products. Chewy's auto-ship service is a key feature, providing customers with a convenient way to receive regular deliveries. The company competes with other major players in the pet retail industry, such as Petco and Amazon.

On March 26, 2025, Chewy is set to release its quarterly earnings, with Wall Street analysts estimating an EPS of $0.21 and projected revenue of approximately $3.2 billion. This earnings report is crucial as it could influence investor sentiment. The stock's movement will largely depend on whether Chewy meets or exceeds these expectations, potentially impacting its near-term stock price.

Chewy faces ongoing margin pressure, which remains a significant concern for investors. Despite this, the company's auto-ship service continues to provide a steady stream of recurring revenue. However, there has been a slowdown in the growth of active customers, reflecting post-pandemic churn. This decline is being offset by higher net sales per customer, which could positively impact the company's bottom line.

Chewy's financial metrics provide insight into its valuation and performance. The company's P/E ratio is approximately 34.87, indicating the market's valuation of its earnings. The price-to-sales and enterprise value to sales ratios both stand at about 1.21, suggesting how much investors are willing to pay per dollar of sales. These figures reflect the company's total valuation relative to its sales.

Chewy's enterprise value to operating cash flow ratio is approximately 28.53, offering insight into its cash flow generation relative to its valuation. The earnings yield is about 2.87%, providing a perspective on the return on investment from earnings. However, the debt-to-equity ratio of approximately 2.29 indicates significant financial leverage, and the current ratio of around 0.74 may suggest potential liquidity challenges in covering short-term liabilities.