Chewy's Customer Growth Accelerates Ahead Of Q3 — JPMorgan Expects Upside

Chewy Inc (NYSE:CHWY) is scheduled to report its third-quarter results on Wednesday. The company is likely to report upside for both the third-quarter results and full-year guidance, according to JPMorgan.

The Chewy Analyst: Analyst Doug Anmuth maintained an Overweight rating and a $45 price target.

The Chewy Thesis: The company "is leaning into growth initiatives & marketing to support share gains," Anmuth said in the note.

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Chewy is likely to report a sequential gain in active customer net adds of more than 160,000 for the third quarter and project over 718,000 adds for the year, he added.

Although third-party data suggests a 12% year-on-year decline in website visits in the third quarter, the company is likely to report 7% net sales growth for the quarter and 8% for the year, the analyst stated.

"With strong execution, we believe CHWY could modestly raise FY25 guidance above the current $12.50B-$12.60B Net Sales and 5.4-5.7% Adj. EBITDA margins," he further wrote.

CHWY Price Action: Chewy shares were up 2.72% at $34.38 at the time of publication on Monday, according to Benzinga Pro data.

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