Chewy Reports Strong Profit Despite Soft Pet Spending
On September 9, 2026, Chewy reported fiscal second-quarter net sales of $3.33 billion, a year-over-year increase of 7.3%. The company's adjusted earnings per share came in at $0.36, significantly higher than the expected $0.18 and prompting an upward revision to its full-year outlook. CEO Sumit Singh noted that while overall pet spending remained soft, Chewy continued to gain market share across both established and newer segments. Chewy's recurring revenue base remains strong, with Autoship sales rising 9.3% year over year to $2.82 billion or 84.6% of total net sales. The company is also expanding into growth areas like Chewy Health, which saw triple-digit revenue growth and specialty categories such as equine and exotics that posted mid-double-digit gains for the seventh consecutive quarter. Despite these positives, CFO Chris Deppe highlighted one-time benefits contributing to profitability in Q2, including $10 million from timing advantages and over $5 million from discrete items. These non-recurring factors may limit future margin expansion expectations.
Tickers: $CHWY
Topics: earnings pet industry revenue growth subscription model