Is Chewy's Autoship Penetration the Core Long-Term Growth Engine?

Core Insights - Chewy, Inc.'s Autoship program is a significant long-term growth driver, generating $2.61 billion in sales, accounting for 84% of total net sales, with a year-over-year increase of approximately 13.6% [1][10] - The company reported a gross margin expansion of 50 basis points year over year to 29.8%, supported by a strong Autoship baseline and disciplined marketing [2][10] - Chewy's active customer base reached 21.2 million, a 5% increase year over year, with net sales per active customer rising to $595, reflecting nearly a 5% increase from the previous year [2] Autoship Program Performance - Autoship provides operational advantages, including better inventory forecasting and optimized fulfillment center utilization [3] - The integration of Autoship with Chewy's paid membership program, Chewy+, enhances customer engagement and purchase frequency [4][5] - Chewy+ membership fee increased from $49 to $79, yet early indicators show resilient demand and favorable conversion rates from trial to paid membership [4] Financial Metrics - Adjusted EBITDA increased by 30% year over year to $180.9 million, indicating strong financial performance [2] - The Zacks Consensus Estimate for earnings per share is projected at $1.28 for the current fiscal year and $1.56 for the next, reflecting expected growth rates of 23.1% and 22.1% respectively [11]