Chewy (CHWY) Stock Forecast & Price Target

Chewy has demonstrated a strong financial performance in fiscal 2024, with sales reaching $11.9 billion, reflecting a solid growth trajectory in the petcare market. The company has seen a significant increase in active customers, totaling 20.9 million, with a quarter-over-quarter growth of approximately 150,000, indicating improved customer acquisition and retention strategies. Additionally, with a 5% year-over-year increase in net sales per active customer and management's raised revenue outlook for the year, Chewy showcases its robust operational efficiency and expanding market share in the petcare industry.

Chewy, the largest e-commerce petcare retailer in the U.S., faces a challenging outlook due to slowing e-commerce penetration in the pet category and intensifying competition, which could hinder industry growth. Furthermore, potential risks include an inability to effectively acquire and retain customers, accurately forecast consumer trends, or introduce new products, all of which may impact Chewy's premium market position. Management's projections indicate a prolonged environment of low single-digit industry growth, suggesting that the firm may struggle to achieve sustainable growth in the near term.