By Dean Seal

Chewy is scheduled to report fiscal fourth-quarter results before the market opens Wednesday. Here is what you need to know.

PROFIT: The online pet retailer is expected to post a profit for the quarter ended in early February of $14.8 million, or 3 cents a share, according to consensus estimate of 14 analysts polled by FactSet. That's down from $31.9 million, or 7 cents a share, a year earlier.

EARNINGS: Stripping out one-time items, adjusted earnings are expected to be 21 cents a share, according to the projections of 16 analysts surveyed by FactSet.

SALES: Sales are forecast to rise to $3.2 billion from $2.83 billion a year earlier, according to the estimates of 24 analysts tracked by FactSet.

The stock rose 46% during the quarter and was recently changing hands at $33.59.

WHAT TO WATCH

--Investors will be eager to see guidance for the current fiscal year amid a pullback in discretionary spending. Seaport analyst Aaron Kessler initiated coverage for the company last week with a neutral rating, saying pet spending should be fairly resilient against the choppy spending backdrop, though pet adoptions could slow.

--Chewy should be able to grow revenue by about 5% in fiscal 2025, Raymond James analysts said in a research note last week. Active customers have been a consistent driver of low-single-digit growth, they said. The company should also be able to expand gross margin as it gets a higher revenue contribution from its healthcare division, the analysts said.

--Expects management to introduce conservative guidance, similar to how it did a year ago, given sluggish growth for the pet food category and uncertain consumer spending dynamics, Oppenheimer analysts said in a recent research note.

Write to Dean Seal at dean.seal@wsj.com

(END) Dow Jones Newswires

March 25, 2025 11:27 ET (15:27 GMT)

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