Wall Street expects Chewy to report consensus revenue of $3.32 billion and EPS of $0.18, with the stock currently trading at $23.66 compared to a median analyst price target of $31.27. Investors are primarily focused on the stabilization of the active customer base and continued growth in Net Sales Per Active Customer (NSPAC) for the fiscal second quarter.
While top-line growth has remained modest at approximately 7.1% YoY, Chewy has significantly expanded margins through its high-margin sponsored ads platform and pet health services. Analysts are watching for signs that pet category spending has bottomed, as consistent growth in the subscription-based Autoship program now accounts for over 84% of total net sales.