Could Buying Chewy (CHWY) Stock Today Set You Up for Life?

Core Insights - Chewy, the largest online pet retailer in the U.S., went public in June 2019 at $22 per share and reached an all-time high of $118.69 in February 2021, showcasing its market dominance and rapid growth [1][2] Sales and Customer Growth - In fiscal 2020, Chewy's net sales surged by 47%, active customers increased by 43%, and net sales per active customer rose by 3%, largely driven by the pandemic [3] - Growth in active customers and net sales slowed in fiscal 2021 as the pandemic effects waned, with a decline in active customers in fiscal 2022 and 2023 due to rising inflation and increased competition from Amazon [4] - Year-over-year metrics show a decline in active customer growth from 8% in FY 2021 to a projected 5% in 9M 2025, while net sales growth decreased from 24% in FY 2021 to a projected 8% in 9M 2025 [5] Strategic Developments - Despite the slowdown, Chewy has been gaining active customers and increasing net sales per active customer through growth in Autoship subscriptions, private label products, integrated ads, and pet health insurance [6] - In Q3 2025, 83.9% of net sales came from Autoship customers, up from 79.2% in FY 2024, indicating a strong reliance on this subscription model [7] Stock Performance - Chewy's stock has declined over 70% from its all-time high, reflecting a cooling growth trajectory in the post-pandemic market [8]