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Chewy Sees Strong Growth in Q1 Fiscal 2025
Chewy (NYSE: CHWY) reported an 8% increase in sales for the first quarter of fiscal 2025, totaling $3.1 billion, exceeding its guidance. Net income rose to over $192 million in adjusted EBITDA, a $29.8 million increase from the previous year. The company’s shares have advanced more than 21% this year, while the S&P 500 has risen 9.6%.
As of the recent quarter, Chewy holds $616 million in cash with no debt. The AutoShip service accounts for 82% of net sales, providing visibility on future revenues. The company has also introduced sponsored ads, contributing to gross margin gains.
Chewy’s shares are currently valued at 32 times forward earnings estimates, reflecting robust investor interest, although market competition from low-cost retailers remains a potential concern.
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