Chewy is leaning on a business model that looks less like traditional discretionary retail and more like a recurring pet-care platform. Autoship customer sales reached $10.50 billion in fiscal 2025, representing 83.3% of net sales, and rose 10.5% year over year to $2.83 billion in the first quarter of fiscal 2026, accounting for 84.4% of net sales. The company is expanding beyond core pet retail into a broader pet health ecosystem through Chewy Vet Care, PracticeHub, SmartPak, and Modern Animal, with SmartPak expected to contribute $80 million to fiscal 2026 net sales and Modern Animal expected to add $70 million. In the first quarter of fiscal 2026, gross margin expanded 50 basis points year over year to 30.1%, and adjusted EBITDA increased 31.3% to $253.1 million, while adjusted EBITDA margin improved 130 basis points to 7.5%. However, management lowered its fiscal 2026 revenue outlook to $13.40-$13.55 billion from $13.60-$13.75 billion, citing a more cautious consumer backdrop and softer premiumization.
Chewy IncAutoship sales growth and expansion into pet health ecosystem (SmartPak, Modern Animal) indicate strong recurring demand.
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