Chewy Q3 Earnings & Sales Beat Estimates on Autoship-Led Momentum
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December 11, 2025 — 10:38 am EST Written by Zacks Equity Research for Zacks-> Chewy, Inc. CHWY reported third-quarter fiscal 2025 results, wherein both the top and bottom lines beat the Zacks Consensus Estimate and increased year over year. The company delivered top-line growth that exceeded the high end of the guidance, supported by the strong performance of its Autoship program.Chewy price-consensus-eps-surprise-chart | Chewy QuoteThe net income of the company reached $59.2 million, which includes $76.5 million in share-based compensation and related taxes. The net margin was 1.9%, rising 180 basis points year over year.Chewy posted adjusted earnings of 32 cents per share, which beat the Zacks Consensus Estimate of 30 cents per share, and increased 12 cents from the prior-year period.The company reported net sales of $3,116.6 million, which increased 8.3% year over year and surpassed the Zacks Consensus Estimate of $3,098 million. The year-over-year increase was driven by the continued strength of the Autoship program, as the Autoship customer sales rose nearly 13.6% year over year to a record $2,614 million.Chewy ended the fiscal third quarter with 21.2 million active customers, reflecting a roughly 5% increase year over year. Chewy’s net sales per active customer reached $595, marking a 4.9% year-over-year increase.Chewy’s gross profit reached to $928.2 million in the quarter. The gross margin increased 50 basis points (bps) to 29.8% from 29.3% in the third quarter of fiscal 2024.SG&A expenses reached to $665.1 million in the fiscal third quarter, from $626.5 million in the prior year period. Advertising and marketing expenses for the fiscal third quarter totaled $197.9 million compared with the year-ago period figure of $191.8 million.Adjusted EBITDA was $180.9 million, a rise of $42.7 million from the year-ago quarter figure. The adjusted EBITDA margin increased 100 bps year over year to 5.8%.The company ended the quarter with $675.4 million in cash and cash equivalents. Total shareholders’ equity was $469.4 million. In the fiscal third quarter, the company generated free cash flow of $176 million.For the fourth quarter of fiscal 2025, Chewy expects net sales between $3.24 billion and $3.26 billion. Adjusted earnings per share are anticipated to be in the range of 24 cents to 27 cents.For fiscal 2025, Chewy now expects net sales to be between $12.58 billion and $12.6 billion compared with the previously guided range of $12.5 billion to $12.6 billion. The adjusted EBITDA margin is expected to be in the range of 5.6% to 5.7%, in comparison with the previously guided range of 5.4% to 5.7%.This Zacks Rank #3 (Hold) stock has gained 2% in the past three months against the industry’s decline of 3.2%.Image Source: Zacks Investment ResearchSome better-ranked stocks have been discussed below:Five Below, Inc. FIVE operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings indicates growth of 19.8% and 9.7%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.American Eagle Outfitters, Inc. AEO operates as a specialty beauty retailer in the United States, Mexico, and Kuwait. At present, Ulta Beauty flaunts a Zacks Rank of 1.The Zacks Consensus Estimate for AEO’s current fiscal-year sales implies growth of 1.8% and earnings indicate a decline of 25.3%, respectively, from the year-ago figures. AEO delivered a trailing four-quarter earnings surprise of 35.1%, on average.Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn carries a Zacks Rank of 2 (Buy).The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings indicates growth of 16.2% and 20.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average. The next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives. Investors who bought shares like Nvidia at the right time have had a shot at huge gains. But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies. Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free reportAmerican Eagle Outfitters, Inc. (AEO) : Free Stock Analysis ReportBoot Barn Holdings, Inc. (BOOT) : Free Stock Analysis ReportFive Below, Inc. (FIVE) : Free Stock Analysis ReportChewy (CHWY) : Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchThe views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.This data feed is not available at this time.