Cat People vs. Dog People: Chewy’s CEO Reveals Who’s Spending More on Their Pets Right Now, and Who’s Cutting Back
Three pet industry CEOs have all flagged the same unexpected split in consumer behavior, and it is quietly reshaping where billions in annual pet spending actually land.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Chewy (NYSE:CHWY | CHWY Price Prediction) chief executive Sumit Singh said on the company’s September 9 earnings call that “dog seems to be worsening; cat seems to be strengthening”. The same shift appeared on earnings calls from two other pet-industry executives in the past three weeks.
Petco Echoes the Cat Momentum
Petco Health & Wellness (NASDAQ:WOOF) chief executive Joel D. Anderson said “In the second quarter, we introduced new high-impact brands that resonate strongly with cat parents, generating nice gains across consumables, supplements, bedding and furniture.” Anderson also noted “The dog business is still soft. Adoptions are down slightly.” Petco launched its cat treat brand Candy Shop on September 2, according to CNBC.
General Mills Sees the Same Split in the Data
General Mills (NYSE:GIS) reported double-digit percentage growth in cat food sales including its Tiki Cat brand, while dog food sales fell by a high digit percentage. Chief executive Jeff Harmening attributed the trend to Americans adopting more cats and fewer dogs.
General Mills chief operating officer Dana McNabb said “We really have to relook at the entire proposition of the product, the packaging, the marketing, the communication, we have work to do.” Part of the dog weakness stems from execution as well as demand.
Ownership Data Backs the Shift
Per CNBC citing the American Pet Products Association, cat ownership rose 5% in 2025, with an estimated 53 million households having cats. That followed a 23% surge in 2024. Dog ownership also grew, rising from 51% of US households in 2024 to 53% in 2025. Both are growing. Cats are gaining share faster.
Per Morgan Stanley’s 2026 pet industry outlook, analyst Gutman noted cats typically require lower overall spending than dogs across healthcare, food and accessories, an appealing profile as 22% of pet owners report cutting back spending overall, up 10 percentage points from 2024, according to CNBC. Dogs still cost far more per animal. Average annual spending per dog rose from roughly $1,200 in 2015 to over $2,400 in 2025, while cat spending went from roughly $800 to roughly $1,600, according to CNBC.
Chewy Beat, Raised Guidance, Stock Still Down
Chewy posted second-quarter net sales of $3.33 billion, up 7.3% year over year at the high end of guidance, adjusted EPS of $0.36 against roughly $0.18 expected, and raised full-year sales guidance to $13.46 billion to $13.57 billion. Petco delivered roughly $1.5 billion in Q2 net sales with comparable sales up 0.6%, and management expects dog demand to improve in 2027.
Chewy traded at $18.60 as of 11:55 AM Eastern on September 24, 2026, up 0.24% on the day, on a roughly fifteen-minute delay, according to CNBC. The stock is down 43.72% year to date from $33.05, down 51.39% over one year, down 24.08% over the past month and down 11.05% over the past week, according to CNBC. The company beat, raised guidance, and is riding a category tailwind. The stock has still lost roughly half its value over twelve months.
Contact [email protected] for any questions or corrections.
AJ spent 10 years writing about financial markets at The Motley Fool. His coverage centers on technology stocks and the broader macroeconomic trends, from interest rates to geopolitics, that shape where markets are headed next. AJ is drawn to the stories where big-picture economics and individual companies collide.
