Chewy, Inc. reported a strong performance in its fourth-quarter earnings, surpassing analysts' expectations with net sales of $3.25 billion, a 14.9% increase year-over-year. The company also posted an earnings per share (EPS) of $0.28, exceeding the consensus estimate of $0.20 by $0.08. Chewy's gross margin improved to 28.5%, up 30 basis points from the previous year. The company anticipates revenue for the first quarter of 2025 to be between $3.06 billion and $3.09 billion, slightly above the consensus estimate of $3.04 billion. In contrast, Petco Health and Wellness reported disappointing earnings, with a fourth-quarter revenue of $1.52 billion, missing the expected $1.56 billion, and an EPS of -$0.05, which was below the anticipated -$0.02. Despite these results, Petco's stock surged by 11% in after-hours trading, reflecting optimism about its future under new leadership.