09:08 AM EDT, 09/10/2025 (MT Newswires) -- Chewy (CHWY) lifted its full-year sales outlook on Wednesday as the online pet store company reported fiscal second-quarter revenue above market estimates, while earnings were in line with expectations.

Sales are now anticipated to be in a range of $12.5 billion to $12.6 billion for fiscal 2025, the company said in an earnings presentation. It previously forecast sales to come in between $12.3 billion and $12.45 billion, while the current consensus on FactSet is for nearly $12.49 billion.

Chewy continues to project its adjusted earnings before interest, taxes, depreciation and amortization margin to be at 5.4% to 5.7% for the fiscal year. "We believe it is prudent to remain on the offense in the second half of 2025 and invest to strengthen Chewy's share position in the pet category," interim Chief Financial Officer Will Billings said during an earnings call, according to a FactSet transcript.

For the ongoing three-month period, the company expects adjusted EPS to come in between $0.28 and $0.33, while the Street is looking for $0.30. Sales are pegged at $3.07 billion to $3.1 billion, representing annual growth of about 7% to 8%. The market's current forecast is for $3.05 billion for the quarter.

The stock dropped 9.2% in the most recent premarket activity.

Adjusted earnings for the quarter ended Aug. 3 jumped 38% year over year to $0.33 per share, meeting the Street's view. Sales improved to $3.10 billion from $2.86 billion, ahead of the average analyst estimate of $3.08 billion.

Active customers grew 4.5% to 20.9 million, while net sales per active customer reached $591, compared with $565 in the prior-year quarter. Sales from the company's Autoship program climbed 15% to $2.58 billion.

Gross margin rose by 90 basis points on an annual basis, buoyed by the company's "fast growing sponsored ads business and favorable mix into premium categories," Chief Executive Sumit Singh said on the call. Operating expenses rose to $872.5 million from $811.7 million.