Overview

* Chewy fiscal Q2 revenue rises 8.6% yr/yr, beating analyst expectations

* Co's Q2 net income drops

* Adjusted EBITDA improves, driven by operational efficiency gains

Result Drivers

* AUTOSHIP SALES - Autoship customer net sales rose 15%, comprising 83% of total net sales, per CEO Sumit Singh

* CUSTOMER ENGAGEMENT - Active customers grew 4.5% yr/yr to nearly 21 mln, with net sales per active customer increasing to $591

* TAX IMPACT - Net margin fell due to absence of prior yr's $275.7 mln tax benefit

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $3.10 $3.08

Revenue bln bln (24

Analysts

)

Q2 Net $62 mln

Income

Q2 Basic $0.15

EPS

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 12 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the miscellaneous specialty retailers peer group is "buy"

* Wall Street's median 12-month price target for Chewy Inc ( CHWY ) is $48.00, about 12.3% above its September 9 closing price of $42.10

* The stock recently traded at 59 times the next 12-month earnings vs. a P/E of 64 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)