Chewy Reports 7.7% Sales Growth and 51.9% Net Income Increase in Latest Quarter

Chewy, Inc. reported a net sales increase of 7.7% for the thirteen weeks ended May 3, 2026, reaching $3.36 billion compared to $3.12 billion in the same period last year. The company's net income also saw significant growth, rising 51.9% to $94.8 million, up from $62.4 million in the prior year. This performance translated to earnings per share of $0.23, a 53.3% increase from $0.15 in the previous year. The gross profit for the quarter was $1.01 billion, reflecting a gross margin of 30.1%, which is an improvement from 29.6% in the same quarter last year.

In terms of operational metrics, Chewy's active customer base grew by 3.6% to 21.5 million, while net sales per active customer increased by 2.4% to $597. The company also reported that sales from its Autoship subscription program rose by 10.5% to $2.83 billion, accounting for 84.4% of total net sales. The increase in customer engagement and sales was attributed to a combination of effective marketing strategies and the expansion of product offerings, including the recent acquisition of SmartPak, which was completed on February 2, 2026.

Chewy's financial position showed a decrease in cash and cash equivalents, which fell to $485.2 million from $860.1 million at the end of the previous fiscal period. The company reported total liabilities of $2.88 billion, slightly up from $2.87 billion, while stockholders' equity decreased to $424.2 million from $497.9 million. The increase in liabilities was primarily due to higher trade accounts payable, which rose to $1.31 billion from $1.22 billion.

Strategically, Chewy has been active in expanding its business through acquisitions, including the recent purchase of Modern Animal, Inc. for $400 million, which aims to enhance its integrated pet healthcare ecosystem. The company has also been repurchasing shares, with $200 million spent on repurchasing 7.6 million shares during the quarter, leaving an authorized repurchase value of $550 million remaining under its share repurchase program.

Looking ahead, Chewy anticipates continued growth driven by its expanding customer base and product offerings. However, the company remains cautious about macroeconomic conditions, including inflation and consumer spending patterns, which could impact future performance. Chewy's management is focused on maintaining operational efficiency and adapting to market changes to sustain its growth trajectory.