If You're Looking for a Good Reason to Buy Chewy Stock, This Is It
If you were looking for a reason to not buy shares of pet e-commerce company Chewy (NYSE: CHWY), then its lack of customer growth in recent years was a pretty good one. It overshadowed many otherwise good things happening at the company.To be clear, there's been plenty of good with Chewy. In 2024, the company had net sales of $11.9 billion. But the impressive stat here is that net sales per active customer continue to grow. As of the fourth quarter of 2024, it had annual sales of $578 per active customer, on average. For perspective, this number was only $495 in the same quarter two years ago.Not only are sales per customer encouragingly trending higher and higher, Chewy's profit margins are also improving. In 2020, the company opened its first fulfillment center with automation capabilities, and it's continued to open more automated centers in the years since. The end result is that Chewy's gross margin has improved by over 20% since then and is now at an all-time high.Continue reading
If you were looking for a reason to not buy shares of pet e-commerce company Chewy (NYSE: CHWY), then its lack of customer growth in recent years was a pretty good one. It overshadowed many otherwise good things happening at the company.
To be clear, there's been plenty of good with Chewy. In 2024, the company had net sales of $11.9 billion. But the impressive stat here is that net sales per active customer continue to grow. As of the fourth quarter of 2024, it had annual sales of $578 per active customer, on average. For perspective, this number was only $495 in the same quarter two years ago.
Not only are sales per customer encouragingly trending higher and higher, Chewy's profit margins are also improving. In 2020, the company opened its first fulfillment center with automation capabilities, and it's continued to open more automated centers in the years since. The end result is that Chewy's gross margin has improved by over 20% since then and is now at an all-time high.
