Chewy Fetches Strong Profits From Loyal Pet Parents

Chewy Inc. (NYSE:CHWY) on Wednesday reported a third-quarter 2025 adjusted earnings of 32 cents per share, beating the consensus of 13 cents and within the management guidance of 28-33 cents.

The retailer of pet supplies reported sales of $3.117 billion, up 8.3% year over year, compared to the consensus of $3.099 billion and the management guidance of $3.07 billion-$3.1 billion.

Autoship customer sales reached $2.61 billion, up 13.6%. Chewy Autoship is a recurring delivery program that allows customers to schedule regular shipments of pet food and supplies.

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It offers a discount on the initial order and ongoing savings on recurring orders. In the quarter, Autoship customer sales represented 83.9% of net sales.

Gross margin saw a year-over-year increase of 50 basis points at 29.8%. Net sales per active customer increased by 4.9% to $595.

Adjusted EBITDA increased 30.9% to $180.9 million. The adjusted EBITDA margin increased by 100 basis points year over year to 5.8%. Chewy reported active customers of 21.16 million, up 4.9% year over year.

“Chewy continues to outperform the pet category and expand market share, with profits once again growing faster than sales,” said Sumit Singh, CEO of Chewy.

“We exceeded the high end of our net sales guidance, grew margins, and delivered strong free cash flow generation,” Singh added.

Outlook

Chewy expects fourth-quarter adjusted earnings of 24-27 cents per share versus the consensus of 12 cents.

The pet product retailer forecasts fourth-quarter sales of $3.24 billion-$3.26 billion compared to the consensus of $3.272 billion.

Chewy raises its fiscal 2025 sales guidance from $12.50 billion-$12.60 billion to $12.58 billion-$12.60 billion compared to the consensus of $12.67 billion, with adjusted EBITDA margin expected to be 5.6%-5.7% (versus prior 5.4%-5.7%).

CHWY Price Action: Chewy shares were up 6.20% at $37.00 during premarket trading on Tuesday, according to Benzinga Pro data.

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