Core Insights - Chewy, Inc. (CHWY) reported strong second-quarter fiscal 2025 results, with Autoship subscription sales increasing 14.9% year over year to $2,576.9 million, now accounting for 83% of total net sales, up from 78.4% in the same period last year, indicating robust customer retention and recurring purchase behavior [1][7] Group 1: Financial Performance - Overall net sales growth for Chewy was 8.6%, while Autoship's growth significantly outpaced this, reflecting enhanced customer engagement [1] - Chewy's gross margin expanded by 90 basis points year over year to 30.4%, driven by the operational efficiencies gained from the Autoship program [2][7] - The company is targeting full-year net sales of $12.5-$12.6 billion and an adjusted EBITDA margin of 5.4-5.7% for fiscal 2025, supported by the strength of Autoship and rising Chewy+ adoption [4] Group 2: Customer Metrics and Market Position - Chewy has approximately 20.9 million active customers, with the growing share of Autoship sales providing a more stable revenue foundation [4] - Chewy's shares have increased by 23.6% over the past year, outperforming key peers such as Central Garden & Pet, Petco Health and Wellness, and Spectrum Brands, which saw declines of 7.1%, 24.3%, and 42.3%, respectively [5] Group 3: Valuation and Estimates - Chewy trades at a forward price-to-sales ratio of 1.20, which is lower than the industry average of 2.26, but at a premium compared to peers like Central Garden & Pet (0.71), Petco Health and Wellness (0.19), and Spectrum Brands (0.45) [8] - The Zacks Consensus Estimate indicates year-over-year growth of 6% in sales and 22.1% in earnings per share for the current financial year [9]