Chewy Adds 200K Customers as Q1 Sales Rise 7.7%, Cuts Guidance
CHWY•Chewy reported Q1 net sales of $3.36B, up 7.7% YoY, and EPS of $0.43 while adding 200K customers to reach 21.5M active users. It lifted Autoship sales over 10%, cut full-year sales outlook to $13.4–13.55B (below $13.66B consensus), and warned of pressure on premiumization and customer acquisitions.
1. Q1 Financial Results
Chewy posted net sales of $3.36 billion in Q1, a 7.7% year-over-year increase, and delivered earnings per share of $0.43. The company added 200,000 net new customers, bringing its active user base to 21.5 million, while its Autoship subscription program saw revenue grow by more than 10%.
2. Full-Year Outlook Revision
Management cut its full-year sales guidance to a range of $13.40 billion to $13.55 billion, down from a prior outlook of $13.60 billion to $13.75 billion, falling short of the consensus forecast of $13.66 billion. This revision reflects cautious assumptions about consumer spending trends in the pet category.
3. Q2 Guidance and Operating Pressure
For the second quarter, Chewy expects revenue between $3.30 billion and $3.33 billion and adjusted EPS of $0.36. Executives highlighted ongoing headwinds including softer premiumization and lower discretionary product attachment rates across parts of its customer base.
4. Market Reaction
Following the earnings call, the stock traded down by about 1%, erasing earlier gains. Investors are closely watching customer acquisition trends and margin outlook as indicators of the company’s ability to sustain growth under challenging consumer conditions.
