Chewy, Inc. Q2 2025 Earnings Recap

Chewy's Q2 2025 results exceeded expectations, with net sales rising nearly 9% year-over-year to $3.1 billion, driven by strong performance in the Autoship program and robust growth in the hard goods segment.

Key Takeaways

• Autoship sales reached a record $2.58 billion, accounting for 83% of total net sales, reinforcing its strategic importance.
• Gross margin expanded to 30.4%, aided by growth in sponsored ads and a favorable product mix, with adjusted EBITDA of $183.3 million.
• Active customers rose to 20.9 million, reflecting 4.5% year-over-year growth, supported by improved spend metrics among new customers.
• Chewy+ membership program is gaining traction, contributing positively to net sales and customer engagement, with future growth expected.
• Launched "Get Real," a new private brand of fresh dog food, tapping into the growing trend of premium pet nutrition.