Chewy Reports Q3 Earnings Beat with Improved Profitability

The online pet retailer saw revenue grow 4.8% year-over-year, with net income swinging to a profit and gross margins expanding.

Chewy's Q3 revenue reached $2.88 billion, a 4.8% increase from the same period last year, slightly exceeding analyst expectations.
The company reported adjusted earnings per share of $0.20, significantly beating the consensus estimate of $0.06.
Net income for the quarter was $3.9 million, a turnaround from a $35.4 million loss in the prior year, driven by operational improvements and cost management.
Gross margins improved by 80 basis points to 29.3%, with efficiency gains in the supply chain and strong performance in consumables and private brands.
Chewy repurchased 11.8 million shares during the quarter, with $424.8 million remaining authorized for future buybacks, and maintained strong liquidity with $506.6 million in cash and no outstanding debt.