Key Takeaways CHWY Autoship sales hit $2.61B, up 13.6% and representing 84% of total Q3 net sales.Gross margin expanded 50 bps to 29.8% as Autoship mix and disciplined marketing lifted EBITDA 30%.Chewy drove higher order frequency and Autoship use, with paid members delivering margins in line.Chewy, Inc.’s (CHWY) Autoship program is evolving as a key long-term growth driver, as reflected in its third-quarter fiscal 2025 results, which demonstrate the program's strong performance. Autoship generated $2.61 bi ...

Core Insights - Chewy, Inc. is a leading online retailer in the pet products industry, offering a variety of items and subscription services like Chewy+ to enhance customer convenience and savings [1] Financial Performance - Goldman Sachs set a price target of $52 for Chewy, indicating a potential increase of approximately 46.77% from its current price of $35.43, reflecting an optimistic outlook based on strong fiscal performance [2][6] - Chewy's third-quarter earnings report showed earnings of 32 cents per share, surpassing the expected 30 cents, with an 8.3% year-over-year revenue increase to $3.12 billion, driven by unit volume growth rather than price increases [3][6] Customer Metrics - The number of active customers rose to 21.2 million, marking a nearly 5% increase year-over-year, attributed to improved marketing efficiency and higher conversion rates [3] - Autoship sales, crucial for predictability and cost efficiency, grew by 13.6% year-over-year to $2.61 billion, indicating strong demand and customer loyalty [5][6] Market Dynamics - Despite initial market volatility due to fourth-quarter adjusted earnings guidance falling short of expectations, the stock stabilized after management clarified the inclusion of integration costs [4] - Net customer additions improved to 250,000 from 150,000 in the previous quarter, showcasing a positive shift in customer momentum [4]

Chewy (NYSE:CHWY) Q3 2026 Earnings Call December 10, 2025 08:00 AM ET Company ParticipantsSteven Zaccone - Director of Equity ResearchSumit Singh - CEONatalie Nowak - Director of Investor RelationsWill Billings - Chief Accounting Officer and Interim Principal Financial OfficerConference Call ParticipantsEric Sheridan - Senior Equity Research AnalystAnna Andreeva - Managing Director and Senior Research AnalystShweta Khajuria - Managing Director and Senior Equity Research AnalystDylan Carden - Senior Equity A ...

Chewy (NYSE:CHWY) Q3 2026 Earnings Call December 10, 2025 08:00 AM ET Company ParticipantsSteven Zaccone - Director of Equity ResearchSumit Singh - CEONatalie Nowak - Director of Investor RelationsWill Billings - Chief Accounting Officer and Interim Principal Financial OfficerConference Call ParticipantsEric Sheridan - Senior Equity Research AnalystAnna Andreeva - Managing Director and Senior Research AnalystShweta Khajuria - Managing Director and Senior Equity Research AnalystDylan Carden - Senior Equity A ...

Chewy (NYSE:CHWY) Q3 2026 Earnings Call December 10, 2025 08:00 AM ET Speaker6Hello and welcome to the Chewy third quarter 2025 earnings call. My name is Emily, and I'll be coordinating your call today. After the presentation, you'll have the opportunity to ask any questions, which you can do so by pressing star followed by the number one on your telephone keypad. I will now hand over to our host, Natalie Nowak, to begin. Please go ahead.Speaker7Thank you for joining us on the call today to discuss our thir ...

Pet care company Chewy Inc (NYSE:CHWY) could highlight growth for the sector when the company reports third-quarter financial results on Wednesday before market open. • Chewy stock is showing downward pressure. Where is CHWY stock headed?Here are the earnings estimates, what experts are saying ahead of the earnings and key items to watch.Earnings Estimates: Analysts expect Chewy to report third-quarter revenue of $3.10 billion, up from $2.88 billion in last year's third quarter, according to data from Benzi ...

Core Insights - Chewy, Inc.'s active customer base is showing signs of reacceleration, ending Q2 fiscal 2025 with 20.9 million active customers, a 4.5% year-over-year increase, and adding 150 thousand customers sequentially [1][5] Customer Growth - The growth in active customers is primarily driven by the Autoship subscriptions and Chewy+ program, with Autoship sales rising nearly 15% to $2.58 billion, accounting for 83% of total net sales in Q2 [2][9] - Chewy's Net Sales Per Active Customer (NSPAC) increased by 4.6% year-over-year to $591, indicating a rise in customer spending [3][9] Customer Engagement - Chewy+ members exhibit stronger Autoship participation and higher mobile app engagement compared to non-members, contributing to robust NSPAC growth for Chewy+ customers [3][5] - Management noted improvements in gross subscriptions added to Autoships and better retention rates for repeat orders, suggesting enhanced customer loyalty and engagement [4][9] Financial Performance - Chewy's second-quarter results reflect a re-acceleration in active customers, with high Autoship adoption and increased NSPAC indicating a solid foundation for future growth [5] - The Zacks Consensus Estimate for Chewy's fiscal 2026 and 2027 earnings implies year-over-year growth of 22.1% and 20.7%, respectively [11]

Core Insights - Chewy, Inc.'s Autoship program has become a crucial component of its business model, generating $2.58 billion in sales, which is a 15% year-over-year increase and represents 83% of total net sales [1][9]. Sales Performance - The Autoship program demonstrated strong performance in high-value categories like consumables and health, indicating a solid commitment from core customers [2]. - Autoship's sales growth of 15% outpaced the overall net sales growth of 8.6%, highlighting its effectiveness in driving revenue [2]. Customer Engagement - Chewy+ members exhibit higher participation in Autoship and greater mobile app engagement compared to non-members, contributing to a 4.6% year-over-year increase in Net Sales Per Active Customer (NSPAC) to $591 [4][9]. - The number of active customers rose by 4.5% to 20.9 million during the quarter [9]. Financial Metrics - Chewy's gross margin improved to 30.4%, reflecting an increase of nearly 80 basis points sequentially and 90 basis points year over year, driven by more predictable volume and higher frequency from the Autoship program [3][9]. Future Outlook - The company plans to continue investing in expanding its Autoship and Chewy Plus programs to capture a larger market share [5]. Valuation - Chewy's shares have increased by 2.1% year to date, while the industry has risen by 6.1%, with a forward price-to-earnings ratio of 48.3, significantly higher than the industry average of 23.3 [6][8]. Earnings Estimates - The Zacks Consensus Estimate for Chewy's fiscal 2026 and 2027 earnings suggests a year-over-year increase of 22.1% and 20.7%, respectively, with a trailing four-quarter earnings surprise of 5.8% on average [11].

Core Insights - Chewy, Inc.'s membership program, Chewy+, is becoming a key driver of customer engagement and recurring revenues, contributing approximately 3% of total monthly sales in July and leading to higher spending and purchase frequency among members [1][2][9] - The Autoship feature is a significant contributor to sales, with a 14.9% year-over-year increase in customer sales, accounting for 83% of Chewy's net sales [3][5] - Management anticipates that Chewy+ will represent a mid-single-digit percentage of net sales by the end of fiscal 2025, enhancing the company's digital ecosystem [4][9] Financial Performance - Chewy's net sales grew 8.6% year over year to $3,104.2 million in the second quarter, with projections for fiscal 2025 net sales between $12.5 billion and $12.6 billion, indicating a growth rate of approximately 7% to 8% [5][11] - The net sales per active customer (NSPAC) increased by 4.6% year over year to $591, supported by a customer base of 20.9 million [3][11] - Chewy's shares have increased by 33.6% over the past year, outperforming the industry growth of 19.2% [8] Competitive Landscape - Central Garden & Pet Company reported a decline in net sales of 4% year over year to $960.9 million, attributed to assortment rationalization and lower demand in certain categories [6] - Petco Health and Wellness Company experienced a 2.3% decrease in total net sales year over year, primarily due to store closures, with expectations of a low single-digit decrease in net sales for fiscal 2025 [7] Valuation Metrics - Chewy trades at a forward price-to-sales ratio of 1.13, which is below the industry average of 2.23, indicating potential undervaluation [10] - The Zacks Consensus Estimate for Chewy's current financial-year sales implies a year-over-year growth of 6.1%, while earnings per share are expected to grow by 22.1% [11][15]

Core Insights - Chewy Inc.'s Autoship subscription program is a key driver of growth and customer loyalty, with Q2 fiscal 2025 Autoship sales reaching $2.58 billion, a year-over-year increase of 14.9%, representing 83% of total net sales [1][10] - The growth in Autoship is attributed to higher enrollment and improved retention, supported by a wide product assortment and a seamless digital shopping experience [2] - Chewy's active customer base grew to 20.9 million, a 4.5% increase year over year, with net sales per active customer rising 4.6% [3] Sales Performance - Chewy's net sales growth outperformed competitors like Central Garden & Pet Company and Petco Health and Wellness [6] - Central Garden & Pet reported a 4% decline in Q3 fiscal 2025 net sales to $961 million, while Petco's Q2 fiscal 2025 net sales decreased by 2.3% to $1.49 billion [7][8] Future Outlook - Chewy projects full-year 2025 net sales between $12.5 billion and $12.6 billion, indicating a year-over-year growth of approximately 7% to 8%, with Autoship playing a crucial role in this growth [5][10] - The company trades at a forward price-to-sales ratio of 1.18X, below the industry average of 2.23X, suggesting potential valuation upside [11] Earnings Estimates - The Zacks Consensus Estimate for Chewy's fiscal 2025 and 2026 earnings indicates year-over-year growth of 22.1% and 20.4%, respectively, with recent upward revisions in earnings estimates [12]