Chewy’s Stock Surges Amid Recession-Resilient Pet Spending
Introduction:
Chewy, the online pet supplies retailer, has experienced a significant stock surge, reflecting the pet industry’s resilience even during economic downturns.
Financial Highlights:
- Chewy’s stock has surged over 150% in the past year.
- In Q4, the company reported a 56% increase in adjusted earnings per share and a 15% rise in revenue to $3.25 billion.
- Projections for 2025 estimate $12.4 billion in sales.
Factors Contributing to Growth:
Chewy’s success is attributed to:
- A leading 33% share in the U.S. online pet supply market.
- 80% of sales stemming from its Autoship subscription service.
- Minimal impact from tariffs due to less than 10% of product supply from China.
