Chewy Lifts Sales Outlook As CEO Highlights Customer Gains

Core Insights - Chewy Inc. reported adjusted earnings of 33 cents per share for Q2 2025, surpassing both consensus estimates of 14 cents and management guidance of 30-35 cents [1] - The company's sales reached $3.10 billion, reflecting an 8.6% year-over-year increase, exceeding the consensus of $3.08 billion and management guidance of $3.06 billion-$3.09 billion [1] Sales Performance - Autoship customer sales amounted to $2.58 billion, marking a 14.9% increase [2] - Autoship sales represented 83% of net sales during the quarter [3] - Net sales per active customer rose by 4.6% to $591 [3] Profitability Metrics - Gross margin improved by 90 basis points year-over-year to 30.4% [3] - Adjusted EBITDA increased by 26.5% to $183.3 million, with an adjusted EBITDA margin of 5.9%, up 80 basis points year-over-year [3] - Net income decreased from $299.1 million a year ago to $62 million, while adjusted net income rose from $104.7 million to $141.1 million [4] Customer Growth and Outlook - Active customers grew by 4.5% year-over-year to 20.906 million [3] - Chewy anticipates Q3 adjusted earnings of 28-33 cents per share, compared to the consensus of 23 cents [5] - The company raised its fiscal 2025 sales guidance to $12.5 billion-$12.6 billion, slightly below the consensus of $12.58 billion [5]