Chewy (CHWY), the leading online pet retailer in the U.S., is set to release its fourth-quarter and full-year earnings on March 25. The stock has experienced a significant decline of over 70% in the past five years, primarily due to the post-pandemic normalization of consumer behavior and intensified competition from giants like Amazon. While Chewy enjoyed remarkable growth during the pandemic, it has struggled to maintain that momentum as inflation and changing market dynamics impacted sales of non-essential pet products.
Despite these challenges, Chewy has shown signs of stabilization. The company has successfully locked in more customers through its Autoship subscriptions and expanded its private-label offerings. In Q3 2025, 83.9% of net sales came from Autoship customers, indicating a growing reliance on recurring revenue. Analysts project revenue and adjusted EBITDA growth of 6% and 25%, respectively, for 2025, suggesting potential for recovery.
For market professionals, Chewy’s upcoming earnings report will be crucial in assessing whether its core metrics continue to improve. If the company meets or exceeds expectations, it may present a compelling buying opportunity given its current valuation at just 9 times next year’s adjusted EBITDA.
Source: fool.com