Chewy, Inc. (CHWY)

Chewy reported second-quarter fiscal 2026 net sales of $3.33 billion on 9 September 2026, up 7.3 percent from a year earlier 3.

Without the two businesses it recently acquired, SmartPak and Modern Animal, sales grew 5.7 percent 3. Net income was $80.5 million, and gross margin, the share of sales left after the cost of the goods, was 30.4 percent, level with the year before 3.

Active customers rose 3.8 percent to 21.7 million, and Autoship, the program that ships a customer's regular orders on a schedule, made up 84.6 percent of net sales 23.

The company said the durability of its recurring revenue base gave it confidence to raise its full-year outlook 3. Open questions are how the 29 clinics of Modern Animal, acquired on 21 May 2026, will add to results 28.

Chewy began operating as Chewy.com in 2011 and became a Delaware corporation on 16 March 2016 1. Its fiscal year ends close to 1 February, so Fiscal Year 2025 ended on 1 February 2026 1.

PetSmart, the pet store chain, acquired Chewy in 2017 for nearly $3.4 billion, CNN reported 6. Sumit Singh, a former Amazon consumables executive, joined as chief operating officer in September 2017 and became chief executive in March 2018 1.

Chewy was growing fast but losing money 6. Sales rose 68 percent in 2018 to more than $3.5 billion, and the net loss was $268 million, after a $338 million loss a year earlier 6.

Chewy priced its initial public offering of 46,500,000 Class A shares on 13 June 2019, and trading began on the New York Stock Exchange the next day 7. Chewy offered 5,600,000 of those shares and a PetSmart subsidiary offered 40,900,000 7.

The pandemic years brought rapid growth 4. Net sales reached $7.1 billion in the fiscal year that ended in January 2021 and $8.9 billion the year after, a rise of 24.4 percent that came from more customers and more spending per customer 4.

Chewy turned to a profit in the year that ended in January 2023, with net income of $49.9 million after a loss of $75.2 million the year before 5. Net sales that year were $10.1 billion 5.

In Fiscal Year 2024, net sales were $11.9 billion, up 6.4 percent, and net income was $392.7 million 1. A $241.0 million income tax benefit came from releasing a valuation allowance, a reserve held against past losses 1.

Meanwhile Chewy widened beyond pet food delivery 1. It launched the Connect with a Vet telehealth service in 2020, PracticeHub for veterinarians in 2021 and Chewy Canada in 2023, and opened eight Chewy Vet Care clinics in 2024 1.

In Fiscal Year 2025 net sales rose 6.2 percent to $12.6 billion, and net income was $222.8 million 1. On 2 February 2026 Chewy acquired SmartPak, a horse health and nutrition company, for $175 million in cash 1.

What Chewy sells

Chewy is an online pet store 1. It offers about 190,000 products and services from about 4,000 brands, plus its own private brands such as Frisco, American Journey, Tylee's, Vibeful and Get Real 1.

Consumables, mainly pet food and veterinary diets, brought in $8,777.9 million of Fiscal Year 2025 sales, about 69.7 percent (computed), up 4.5 percent 1. Hardgoods, which are non-food items, brought in $1,436.3 million, up 13.4 percent 1.

Pet health and specialty products, which include prescription medications, brought in $1,980.5 million, up 11.8 percent, while the Other line fell 4.7 percent to $406.8 million 1. Gross margin was 29.8 percent, helped by sponsored ads and consumables 1.

Autoship and customers

Autoship customer sales grew 11.8 percent to $10.5 billion in Fiscal Year 2025 1. Active customers grew 4.0 percent to 21.3 million, and each spent $591 on average 1.

Pet health and clinics

Chewy calls itself the operator of the number one pet pharmacy in America 1. About 20,000 veterinary practices use PracticeHub, which Chewy puts at an estimated 50 percent of United States clinics 1.

Chewy Vet Care had 18 clinics at the end of 2025 1. Modern Animal added 29 owned clinics and over 100,000 member families, and Chewy expects about 60 clinics by the end of fiscal 2026 810.

Management told Zacks that about 40 percent of Chewy Vet Care customers are new to Chewy and reach roughly $900 in first-year net sales per active customer 10.

Places and people

Chewy leases its properties 1. As of 18 March 2026 these were 17 fulfillment centers, 5 corporate offices, 3 customer service centers and 25 veterinary clinics, with co-headquarters in Plantation, Florida and Boston 1.

The company employed about 18,000 people at 1 February 2026, none covered by a union contract 1. Sumit Singh is chief executive, and Christopher Deppe became chief financial officer in February 2026 1.

Rivals and problems

The 10-K says competition is strong, especially online, and names price, selection, delivery speed and customer service as the main factors 1. Zacks names BARK and Petco as rivals 10.

Zacks reported that softer discretionary demand and pressure on premium products remain concerns, even as the company raised its outlook 9.

The umbrella, in words

Brands: Chewy's own private brands are Frisco (hardgoods), American Journey and Tylee's (consumables), Vibeful (wellness) and Get Real (fresh dog food), launched from 2016 to 2025 1. The annual report's Exhibit 21 lists no significant subsidiaries 1.

Owns: Chewy owns 100 percent of SmartPak Equine, acquired for $175 million, and 100 percent of Modern Animal, a veterinary company with a purchase price of $399.8 million 12. It also acquired Petabyte, a veterinary software provider, in 2022 1.

Control: the BC Partners-linked stockholders owned more than 40 percent of the shares and held over 80 percent of the voting power at 18 March 2026 1. In June 2024 Chewy agreed to repurchase 17,550,000 shares from an affiliate of those sponsors for $500 million 1.

After the second quarter, the company said it was raising its full-year revenue and profitability outlook 3. Zacks reported that Chewy now expects fiscal 2026 net sales of $13.46 billion to $13.57 billion, up from a prior range of $13.40 billion to $13.55 billion 9.

Zacks also reported an expected adjusted EBITDA margin of 6.7 percent to 6.8 percent and organic sales growth of 5.5 percent to 6.3 percent 9. Adjusted EBITDA is a measure that leaves out costs such as depreciation, share-based pay and taxes 1.

Chewy expects AI projects to save a low tens of millions of dollars in fiscal 2026 and about $50 million a year in fiscal 2027 9.

For Modern Animal, the company said in April it expects over $125 million in added annual revenue, break-even EBITDA dollars in 2026 and EBITDA contribution from 2027 8. It also expects a 15 percent to 20 percent rise in spending per Modern Animal customer 8.

Chewy's annual report says a project to modernize its finance systems is expected to go live toward the end of Fiscal Year 2026 1. The board also added $500 million to its share repurchase program after the Modern Animal agreement 8.