Chewy Says Autoship and Paid Membership Programs Drive Sales Growth

Group 1 - Chewy's net sales increased by 8.6% year-over-year in the second quarter, surpassing the company's guidance range, driven by growth in the Autoship subscription and Chewy+ membership programs [1][2] - The Autoship program's net sales rose by approximately 15% during the quarter, representing 83% of Chewy's total net sales [2] - Over the past 12 months, Chewy's total net sales grew by 9.2% year-over-year, while Autoship customer sales increased by 14.9% [2] Group 2 - The Chewy+ program exceeded expectations, accounting for 3% of total monthly sales in July, with projections for mid-single-digit share of net sales by year-end [3] - Chewy+ members demonstrate higher net sales per active customer (NSPAC), increased profit per customer, and greater buying frequency compared to non-members [4] - The NSPAC for Chewy+ customers is accelerating, positively impacting Chewy's overall net sales [5][7] Group 3 - Chewy+ offers benefits similar to Amazon Prime and Costco membership, including free shipping, rewards, and exclusive offers [5][6] - The Autoship program allows customers to customize delivery frequency, save on eligible items, and gain priority access to popular products [6] - NSPAC is growing at 4.5% and is expected to increase between 4% to 5% in the second half of the year, driven by stronger Autoship and product mix [7]