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Chewy (CHWY) stock fell 0.59% to $23.45 despite strong fiscal 2025 results showing $12.6B revenue, margin expansion, and improved adjusted earnings. The post ChewyChewy (CHWY) stock fell 0.59% to $23.45 despite strong fiscal 2025 results showing $12.6B revenue, margin expansion, and improved adjusted earnings. The post Chewy

Chewy (CHWY) Stock Dips 0.59% as Market Overlooks Impressive FY2025 Financial Results

Author: Blockonomi

Source: Blockonomi

2026/03/25 20:20

3 min read

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Key Highlights

Shares of Chewy decline 0.59% to close at $23.45 following fiscal 2025 earnings release
Full-year revenue reaches $12.6B with notable margin improvements
Adjusted EBITDA shows substantial growth while net income remains challenged
Fourth quarter demonstrates consistent demand patterns and ongoing margin enhancement
Investors respond cautiously despite robust customer base expansion and cash generation

Shares of Chewy Inc. (CHWY) settled at $23.45, declining 0.59% in trading despite an initially positive session. The stock gave back early advances heading into the closing bell, even as the pet retailer unveiled strong fiscal 2025 financial performance. The company demonstrated consistent revenue advancement and profitability improvements, though the market’s reaction remained measured.

Chewy, Inc., CHWY

Fiscal 2025 Brings Revenue Acceleration and Profitability Improvements

Chewy delivered full-year net sales totaling $12.60 billion, representing a 6.2% increase from the previous fiscal year. When adjusted for calendar differences, the normalized revenue growth rate accelerated to 8.3%, indicating robust underlying business momentum. The company sustained this performance through enhanced customer engagement and broadened merchandise selections.

The gross profit margin expanded to 29.8%, marking a 60-basis-point improvement over the prior year’s level. This margin enhancement stemmed from disciplined expense management and streamlined operational execution. Chewy demonstrated strengthening profitability fundamentals throughout its core business operations.

The company’s adjusted EBITDA climbed to $719.2 million, representing substantial year-over-year growth. The corresponding adjusted EBITDA margin widened to 5.7%, reinforcing the quality of earnings generation. Furthermore, adjusted net income totaled $540.5 million, underscoring stable operational execution.

Bottom-Line Results Present Complex Picture Amid Investment Phase

Chewy generated net income of $222.8 million during fiscal 2025, accounting for share-based compensation expenses. The net profit margin registered at 1.8%, representing a 150-basis-point contraction from the year-ago period. This compression reflected elevated operating expenses and strategic investment initiatives.

Basic earnings per share totaled $0.54, with diluted earnings per share coming in at $0.52. Both metrics decreased by $0.39 versus the comparative period. However, adjusted profitability measures demonstrated advancement, suggesting improved core business economics.

Adjusted diluted earnings per share increased to $1.27, rising $0.23 year over year. This progression underscored operational efficiency improvements when extraordinary items were excluded. The adjusted figures offered enhanced transparency into Chewy’s fundamental business health.

Fourth Quarter Results Reinforce Positive Trajectory Heading Into 2026

Chewy posted fourth quarter net sales of $3.26 billion, advancing 0.5% from the year-earlier period. Normalizing for the 13-week comparison, revenue expanded 8.1%, demonstrating sustained customer demand. The company preserved growth momentum despite calendar-related distortions in the reported numbers.

The quarterly gross margin reached 29.4%, expanding 90 basis points compared to the prior-year quarter. Net income for the period totaled $39.2 million, while the net margin improved to 1.2%. These outcomes reflected progressive operational refinements throughout the quarter.

Quarterly adjusted EBITDA increased to $162.3 million, contributing to margin expansion reaching 5.0%. Adjusted net income experienced a modest decline to $114.8 million, impacted by cost headwinds. Chewy concluded the fiscal year serving more than 21 million active customers while generating healthy cash flows.

The post Chewy (CHWY) Stock Dips 0.59% as Market Overlooks Impressive FY2025 Financial Results appeared first on Blockonomi.

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