Chewy Inc - Class A

Chewy posted a broadly strong fiscal second quarter, with revenue clearing expectations even as adjusted earnings landed a hair below the consensus target. The pet e-commerce retailer reported net sales of $3.10 billion for Q2 2025, up 8.6% year over year and ahead of the $3.08 billion analysts had forecast, while adjusted diluted EPS of $0.33 missed the $0.33 consensus by just 0.48%, a negligible shortfall against an otherwise constructive set of results. The clearest driver of the top-line strength was Autoship, Chewy's subscription-like recurring order program, where customer net sales surged 14.9% year over year to $2.58 billion and now account for 83.0% of total revenue, up from 78.4% a year ago, reflecting deepening customer loyalty. Profitability also improved materially, with adjusted EBITDA climbing 26.5% to $183.30 million and gross margin expanding 90 basis points to 30.4%. Active customers grew 4.5% to nearly 21 million, and net sales per active customer rose 4.6% to $591, suggesting Chewy is both adding users and capturing more spending from its existing base.