Chewy (CHWY) Stock Forecast & Price Target

Chewy, as the largest e-commerce petcare retailer in the U.S., achieved significant fiscal success with $11.9 billion in sales for fiscal 2024 and continues to enhance its customer base, growing active customers to 20.9 million, reflecting a quarterly increase of approximately 150,000, surpassing expectations. The company reported a net sales per active customer (NSPAC) of $591, representing a year-over-year increase of 5%, and demonstrated strong growth in its core business with autoship sales rising 15% year-over-year. Furthermore, management's raised full-year revenue outlook—projecting growth between 5.4% and 6.2% year-over-year—alongside its strategic investments in veterinary services, positions Chewy well for continued market share expansion and operational strength in the pet care industry.

Chewy, the largest e-commerce pet care retailer in the U.S., is facing a negative outlook primarily due to continued supply chain volatility, which may result in missed revenue opportunities and lower gross margins. Additionally, a downside scenario indicates that ongoing supply chain disruptions and potential customer churn could lead to permanent customer loss, negatively impacting top-line growth. Furthermore, a slower penetration of e-commerce in the pet category and increased competition could jeopardize Chewy's premium market positioning over the next 6-12 months.