Chewy, Inc. (CHWY) saw its stock price rise by 1.64% to close at $31.58 on December 6, 2024, following a day of positive sentiment driven by strategic growth initiatives and analyst upgrades. The stock opened at $31.58 and reached a high of $32.02 before settling slightly lower. The trading volume was 5,432,449, close to its average, indicating steady investor interest. The uptick was fueled by Chewy's Q3 earnings report, which, despite mixed results, showed a 4.8% increase in net revenue to $2.88 billion, surpassing consensus estimates. The company's Autoship program, which saw an 8.7% increase in sales, and a 4.2% rise in revenue per user, were highlighted as key growth drivers. Analysts have responded positively, with TD Cowen issuing a buy rating and raising the price target to $34.00, reflecting confidence in Chewy's financial performance and growth potential.
The market's optimism was further bolstered by Chewy's raised FY24 guidance, signaling confidence in its long-term growth trajectory. The company's focus on diversifying revenue streams through initiatives like Sponsored Ads, Chewy Health, and the Chewy+ program has been well-received. Additionally, Chewy's return to customer growth, with active customers reaching 20.2 million, was attributed to enhancements in the mobile app experience and the success of Chewy Vet Care clinics. These developments have positioned Chewy favorably in the e-commerce sector, despite broader economic headwinds.