Get Real Dog Food Launch and Raised Guidance Could Be a Game Changer for Chewy (CHWY)

• Earlier this month, Chewy launched Get Real™, an exclusive line of minimally processed fresh dog food, and raised its full-year 2025 sales guidance to between US$12.5 billion and US$12.6 billion, reflecting 7% to 8% annual growth after adjusting for the prior year’s extra fiscal week.
• This product expansion highlights Chewy’s focus on capturing demand in the fast-growing fresh pet food segment and reinforces its confidence in continued revenue gains.
• Now, let's explore how Chewy's launch of Get Real and updated guidance may influence its long-term investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

Chewy Investment Narrative Recap

Chewy's investment story hinges on continued growth in the pet care sector, expansion into new product categories like fresh dog food, and sustained customer engagement through its Autoship service. The launch of Get Real™ and the raised sales guidance underscore confidence in near-term growth, but the biggest catalyst remains accelerating active customer growth, while modest customer acquisition trends are still the foremost risk. The impact of the product launch on these core risks and drivers appears meaningful but not material in the short term.

Among recent corporate actions, Chewy completed a US$100 million share buyback in late June, signaling an ongoing commitment to shareholder returns alongside ongoing business investments. While this move reflects financial confidence, it does not directly alter the importance of attracting and retaining new customers, which remains essential for long-term revenue expansion and market share.

Still, even with Chewy’s active innovation, investors should be aware that if customer acquisition continues to lag...

Read the full narrative on Chewy (it's free!)

Chewy's outlook anticipates $15.1 billion in revenue and $467.3 million in earnings by 2028. This implies a 7.7% annual revenue growth rate and an $79 million earnings increase from current earnings of $388.2 million.

Uncover how Chewy's forecasts yield a $45.45 fair value, a 21% upside to its current price.

Exploring Other Perspectives

Private investors in the Simply Wall St Community estimate Chewy's fair value in a wide range, from US$30.53 to US$59.35, with 10 distinct perspectives captured. Amid this diversity, muted customer growth remains a key performance watchpoint for the months ahead, prompting you to explore differing viewpoints on what drives Chewy’s outlook.

Explore 10 other fair value estimates on Chewy - why the stock might be worth 19% less than the current price!

Build Your Own Chewy Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Chewy research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Chewy research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Chewy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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