Chewy, Inc. (NYSE:CHWY) is gearing up to disclose its performance in the second quarter of fiscal 2023 on August 30th, after the close of the market. Anticipations are set for growth in both revenue and earnings. According to the Zacks Consensus Estimate, the projected sales for the quarter are approximately $2.763 billion, reflecting a notable 13.7% surge compared to the corresponding period of the previous year.
Forecasts for earnings in the fiscal second quarter have experienced a slight increase of one cent over the last 30 days, now standing at 11 cents per share. This adjustment signifies a remarkable 120% rise in comparison to the 5 cents per share earned in the same quarter of the previous year.
Chewy, a notable supplier of pet-related products and pet food, has consistently outperformed earnings expectations, boasting an average positive earnings surprise of 271.9% over the past four quarters. In its most recent fiscal quarter, the company delivered an astonishing earnings surprise of 600%.
Critical Aspects to Consider
The fiscal second quarter performance of Chewy is likely to have been boosted by its robust e-commerce channels, diverse product offerings, and ongoing innovation initiatives. The company’s commitment to enhancing its website and online platforms through technological advancements has been instrumental in driving online sales.
Increasing product demand, strong customer engagement, and growth in its customer base have been consistent contributors to Chewy’s positive results. Impressively, the company has achieved record-breaking figures in net sales per active customer and Autoship customer sales, thereby strengthening customer loyalty. Moreover, CHWY’s healthcare division has also been a favorable factor.
The Zacks Consensus Estimate for net sales per active customer currently stands at $528, indicating a 3.1% upturn from the previous quarter.
However, the company’s performance for the quarter might have been influenced by challenging macroeconomic conditions, including factors like inflationary pressures. These external forces, coupled with any potential increase in selling, general, and administrative expenses, are anticipated to have impacted Chewy’s performance in the fiscal second quarter.
Other Insights
Zacks’ established analytical model does not definitively forecast an earnings surpass for Chewy in this particular instance. The combination of a positive Earnings ESP (Expected Surprise Prediction) and a favorable Zacks Rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) typically enhances the likelihood of an earnings beat.
Featured Image: Megapixl @ Timonschneider
