Chewy Reports Strong Q2 Results, Autoship Drives Growth
Chewy, a leading online pet supply retailer, has reported strong financial results. The company's autoship program accounted for 83% of its total net sales, growing 15% year over year. Chewy's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) increased to $183.3 million with a margin of 5.9%.
Chewy's gross margin grew significantly, up 90 basis points to 30.4% in the fiscal second quarter of 2025. The company is now focusing on customer retention and steady growth, shifting from its previous strategy of rapid expansion. Chewy's customer base has grown to 21 million active customers, with each spending an average of $591 per year. The company's adjusted net earnings increased to $0.33, a $0.10 hike from last year.
Chewy estimates it has a 41% market share among pet owners for online pet supplies. The company's autoship and membership programs are key to its future prospects. Despite facing competition from major rivals like Amazon, Petco, and PetSmart, Chewy is confident in its ability to maintain market leadership through excellent customer service and innovative offerings.
Chewy's strong financial performance and customer focus have positioned it well in the competitive online pet supply market. With a growing customer base and a focus on loyalty and recurring purchases, Chewy's future prospects remain positive.
