Chewy (CHWY) Stock Forecast & Price Target

Chewy, the largest e-commerce petcare retailer in the U.S., generated $11.9 billion in sales for fiscal 2024 across its diverse product categories, reflecting a strong market presence. Active customer growth reached 20.9 million, surpassing expectations with a quarterly increase of approximately 150,000, which indicates stronger engagement and improved customer acquisition metrics. Furthermore, the company's positive financial outlook is supported by a rising net sales per active customer of $591 and an anticipated revenue increase for the full year, highlighting Chewy's robust performance and effective strategic initiatives in both core and new customer segments.

Chewy, the largest e-commerce petcare retailer in the U.S., faces a negative outlook amid concerns regarding slowing e-commerce penetration in the pet category and increasing competition among existing players. The company's premium positioning is at risk due to potential adverse consumer trends over the next 6-12 months, coupled with various challenges including customer acquisition, supplier relationships, and rising operational costs. Additionally, management anticipates a similar low single-digit industry growth backdrop for the foreseeable future, indicating that recovery may be delayed and affecting overall growth prospects.