Chewy (NYSE:CHWY) is set to report its Q4 results tomorrow. Analysts at Oppenheimer expect Q4 EBITDA of $25 million, in line with the Street estimates. This is predicated on sales growth of 10.8% vs. management’s guidance of 10.0-11.0%.
The analysts expect continued top-line momentum driven by strength in the consumables category to more than offset declines in the company’s more discretionary hard goods offering.
On the guidance front, Oppenheimer believes Street 2023 estimates are realistic, but management forecasts likely incorporate conservatism, especially in the hard goods category, amid macro uncertainty similar to guides seen thus far in their retail coverage.
On the margin front, the analysts expect healthy expansion year-over-year in Q4 and believe fiscal 2023 sets up for more gains.
