On Thursday, Chewy Inc (NASDAQ: CHWY) held its Investor Day. The company sees FY24 sales growth to be below the long-term target of a high single-digit percentage.
The company sees a long-term adjusted EBITDA margin of 10% and expects to deliver margin accretion in FY24, irrespective of the macro environment.
Needham Analyst Anna Andreeva notes that Chewy has focused on only half of the Health TAM ($4 billion insurance and $18 billion products).
She writes that over 20% of active customers purchased from Chewy pharmacy, and as pharmacy TAM shifts online, Chewy should benefit across the P&L.
From a potential pool ...