PLANTATION, Fla. - Chewy, Inc. (NYSE: NYSE:CHWY), a leading online retailer for pet products, disclosed the initiation of a $500 million public offering of its Class A common stock by Buddy Chester Sub LLC, an affiliate of BC Partners Advisors LP, Chewy's principal shareholder. The announcement made today states that the underwriters will be given a 30-day option to buy an additional $75 million in Class A common stock.
Chewy itself is not offering any shares and will not receive proceeds from the sale by the Selling Stockholder. The completion of the offering depends on market conditions, and there is no certainty as to its finalization or timing.
Concurrently, Chewy has agreed to repurchase $300 million of its Class A common stock from the Selling Stockholder, with the price per share equal to what the underwriters will pay in the public offering. This repurchase, which will see the bought-back shares canceled and retired, was approved by a special committee of Chewy's board and is separate from the company’s existing $500 million share repurchase program announced on May 24, 2024. The repurchase is conditional on the closing of the public offering.
Morgan Stanley (NYSE:MS) is serving as the lead book-running manager for the offering. Potential investors are advised to read the prospectus filed with the Securities and Exchange Commission for more detailed information about Chewy and the offering.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities, nor will there be any sale of these securities in any state or jurisdiction where such offer, solicitation, or sale would be unlawful before registration or qualification under the securities laws of such state or jurisdiction.
The information in this article is based on a press release statement from Chewy, Inc.
In other recent news, Chewy Inc . has been the subject of several analyst notes following its robust financial performance. The company's second-quarter earnings and revenue exceeded expectations, with an EBITDA of $145 million, surpassing Wall Street's forecast of $112 million. Chewy's net sales also saw a 3% increase, reaching $2.86 billion.
Barclays (LON:BARC) maintained its target of $34 on Chewy, citing potential for revenue growth, margin expansion, and share buybacks. Goldman Sachs (NYSE:GS) reiterated its Buy rating on Chewy with a price target of $35, highlighting the company's initiatives contributing to an uptick in active customer trends. Morgan Stanley maintained an Overweight rating on Chewy, projecting a higher than consensus EBITDA of $750 million for the fiscal year 2025.
Baird raised the stock's price target to $35, acknowledging the company's significant EBITDA that exceeded expectations by approximately 30%. RBC Capital increased the price target for Chewy shares from $24 to $32, citing evidence of category stabilization and improved profit flow-through as positive indicators.
Chewy's active customer base stood at 20 million, with the Net Sales Per Active Customer (NSPAC) climbing to $565. The company continues to expand its veterinary care services, opening two additional clinics in Colorado and Florida. These are the recent developments for Chewy Inc.
InvestingPro Insights
Amid the news of Chewy's public offering and stock repurchase plan, investors are closely monitoring the financial health and market performance of the company. According to InvestingPro data, Chewy has a market capitalization of approximately $12.98 billion and is trading at a high price-to-earnings (P/E) ratio of 36.87. This suggests investor confidence in the company's future growth, which is supported by a positive revenue growth of 4.36% over the last twelve months as of Q2 2025.
In addition, Chewy has demonstrated a strong return over the last year with a price total return of 58.87%. This robust performance is also reflected in the short-term, with a 13.31% price total return over the last month. Investors may find these figures encouraging, especially when considering the company's potential for profitability, as indicated by two InvestingPro Tips: Chewy is expected to see net income growth this year, and analysts predict the company will be profitable this year.
For those looking to delve deeper into Chewy's financial outlook, there are additional InvestingPro Tips available. These include insights on the company's cash position, earnings revisions by analysts, and valuation multiples. To explore these further, investors can visit InvestingPro's platform, where 14 additional tips are listed, providing a more comprehensive analysis.
These metrics and insights can help investors make more informed decisions regarding Chewy's stock, especially in the context of the current public offering and share repurchase developments.
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