Chewy Inc. (NYSE:CHWY) Earnings Preview and Financial Analysis

• Chewy Inc. (NYSE:CHWY) is set to release its quarterly earnings with an estimated EPS of $0.34 and projected revenue of $3.08 billion.
• The company's stock has more than doubled over the past year, showcasing significant growth despite skepticism from analysts regarding its high P/E ratio of 48.30.
• Chewy's financial health shows a mixed picture, with a reasonable price-to-sales ratio of 1.63 but potential liquidity concerns indicated by a current ratio of 0.75.

Chewy Inc. (NYSE:CHWY) is a leading online retailer specializing in pet supplies, offering a wide range of products from food to pet insurance. The company has been expanding into new areas like personalized pet products and telehealth services. Chewy's market capitalization stands at $19 billion, reflecting its significant presence in the pet industry.

On June 11, 2025, Chewy is set to release its quarterly earnings, with Wall Street analysts estimating an EPS of $0.34 and projected revenue of $3.08 billion. This represents a 7% increase from the previous year, driven by a growing customer base and the success of its Autoship subscription service. The service allows customers to schedule regular deliveries, contributing to Chewy's revenue growth.

Chewy's stock has more than doubled over the past year, rising from $22, although it remains slightly below its value from five years ago. This growth contrasts with Petco Health & Wellness, a competitor whose stock has plummeted 23% recently and lost nearly 85% over the past year. Chewy's strong performance in the fiscal fourth quarter, with a 15% increase in net sales, has set high expectations for the upcoming earnings report.

Despite the positive trajectory, Chewy's stock is trading lower as it approaches the earnings announcement. Analysts express skepticism about the sustainability of its growth, given the company's high price-to-earnings (P/E) ratio of 48.30. This ratio indicates that investors are paying $48.30 for every dollar of earnings, reflecting high expectations for future growth.

Chewy's financial metrics reveal a mixed picture. The company's price-to-sales ratio is 1.63, and its enterprise value to sales ratio is 1.62, suggesting a reasonable valuation relative to sales. However, the debt-to-equity ratio of 1.92 indicates a higher level of debt compared to equity, which could pose risks. Additionally, the current ratio of 0.75 suggests that Chewy's current liabilities exceed its current assets, highlighting potential liquidity concerns.