Chewy delivered strong fourth-quarter results, showcasing significant net sales growth, enhanced margins, and record free cash flow, positioning the company favorably for 2026.
- Achieved robust net sales growth, with ongoing momentum in active customer additions, averaging 150,000 to 250,000 net adds per quarter.
- Margin expansion is anticipated to accelerate in 2026, driven by SG&A leverage and improved efficiencies from new fulfillment centers and AI enhancements.
- Continued investment in Chewy Vet Care, with 10 new practices opened in 2025, enhancing customer engagement and driving growth in high-value health customers.
- E-commerce penetration in the pet industry remains strong, benefiting Chewy's scalable digital platform as consumer preferences shift towards convenience and auto replenishment.
- The company expects to maintain its market share growth and free cash flow generation, independent of broader economic fluctuations.
Community Discussion