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Chewy's Autoship Program Continues to Drive Customer Growth
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Key Takeaways
Chewy's Autoship sales increased more than 10%, with the program representing 84.4% of net sales.
CHWY benefits from higher customer spending, with net sales per active customer reaching $597.
CHWY enhances Autoship and digital marketing tools to support customer acquisition and engagement.
Chewy, Inc.’s (CHWY - Free Report) Autoship continued to be a key driver of the company’s performance. In the first quarter of fiscal 2026, Autoship customer sales reached approximately $2.83 billion, increasing more than 10% year over year and accounting for 84.4% of total net sales. Notably, Autoship growth outpaced overall company growth, highlighting the strength of customer adoption and engagement with the program. Management emphasized that this performance reinforces the durability, visibility, and predictability of the company’s recurring revenue model.
The strength of this model is reflected in the Net Sales Per Active Customer, which reached $597 in the quarter, a 4.6% year-over-year increase. The Autoship program acts as a recurring revenue engine that strengthens Chewy’s competitive moat and supports its structural profitability. It is particularly effective for consumables and healthcare categories, which are fueled by the Autoship flywheel. Management emphasized opportunities to enhance customer growth and engagement through continued improvements to its Autoship platform and digital marketing capabilities.
Chewy expects refinements in the Autoship product flow to accelerate product line attachment rates, while enhanced digital advertising bidding algorithms are intended to support faster customer acquisition. These initiatives are designed to improve the effectiveness of customer engagement and drive stronger growth across the platform.
The company is seeing healthy engagement from active customers, demonstrating sustained interaction with its platform and offerings. The Autoship program also remains a strong contributor to performance, reflecting ongoing customer adoption and retention. In addition, the company continues to gain market share, underscoring the effectiveness of its value proposition and competitive positioning within the market. Overall, Chewy's growing Autoship adoption, resilient customer spending trends and ongoing platform enhancements position the program as an important driver of long-term growth.
Zacks Rundown for CHWY
CHWY shares have lost 26.8% in the past three months against the industry’s 11.8% growth. The company carries a Zacks Rank #4 (Sell) at present.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 18.29, lower than the industry’s average of 21.90.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings for the current and next fiscal year indicates year-over-year growth of 20.5% and 22.2%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
CVNA delivered a negative trailing four-quarter earnings surprise of 71.6%, on average. The Zacks Consensus Estimate for CVNA’s current financial-year sales implies growth of 38.5%, and the same for earnings implies a decline of 6.5% from the year-ago reported numbers.
Commerce.com, Inc. (CMRC - Free Report) provides an artificial intelligence-driven commerce ecosystem in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. CMRC currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 187.9%, on average.
The Zacks Consensus Estimate for CMRC’s current financial-year sales and earnings indicates growth of 2.7% and 57.7%, respectively, from the year-ago reported numbers.
Central Garden & Pet Company (CENT - Free Report) produces and distributes various products for the lawn and garden, and pet supplies markets in the United States. It currently carries a Zacks Rank of 1.
CENT delivered a trailing four-quarter earnings surprise of 45.4%, on average. The Zacks Consensus Estimate for CENT’s current financial-year sales implies a decline of 5.7%, and the same for earnings implies growth of 5.9% from the year-ago reported numbers.
View the Zacks #1 Rank List
Image: Bigstock
Chewy's Autoship Program Continues to Drive Customer Growth
Key Takeaways
Chewy, Inc.’s (CHWY - Free Report) Autoship continued to be a key driver of the company’s performance. In the first quarter of fiscal 2026, Autoship customer sales reached approximately $2.83 billion, increasing more than 10% year over year and accounting for 84.4% of total net sales. Notably, Autoship growth outpaced overall company growth, highlighting the strength of customer adoption and engagement with the program. Management emphasized that this performance reinforces the durability, visibility, and predictability of the company’s recurring revenue model.
The strength of this model is reflected in the Net Sales Per Active Customer, which reached $597 in the quarter, a 4.6% year-over-year increase. The Autoship program acts as a recurring revenue engine that strengthens Chewy’s competitive moat and supports its structural profitability. It is particularly effective for consumables and healthcare categories, which are fueled by the Autoship flywheel. Management emphasized opportunities to enhance customer growth and engagement through continued improvements to its Autoship platform and digital marketing capabilities.
Chewy expects refinements in the Autoship product flow to accelerate product line attachment rates, while enhanced digital advertising bidding algorithms are intended to support faster customer acquisition. These initiatives are designed to improve the effectiveness of customer engagement and drive stronger growth across the platform.
The company is seeing healthy engagement from active customers, demonstrating sustained interaction with its platform and offerings. The Autoship program also remains a strong contributor to performance, reflecting ongoing customer adoption and retention. In addition, the company continues to gain market share, underscoring the effectiveness of its value proposition and competitive positioning within the market. Overall, Chewy's growing Autoship adoption, resilient customer spending trends and ongoing platform enhancements position the program as an important driver of long-term growth.
Zacks Rundown for CHWY
CHWY shares have lost 26.8% in the past three months against the industry’s 11.8% growth. The company carries a Zacks Rank #4 (Sell) at present.
Image Source: Zacks Investment Research
From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 18.29, lower than the industry’s average of 21.90.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for earnings for the current and next fiscal year indicates year-over-year growth of 20.5% and 22.2%, respectively.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Carvana Co. (CVNA - Free Report) operates an e-commerce platform for buying and selling used cars, currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CVNA delivered a negative trailing four-quarter earnings surprise of 71.6%, on average. The Zacks Consensus Estimate for CVNA’s current financial-year sales implies growth of 38.5%, and the same for earnings implies a decline of 6.5% from the year-ago reported numbers.
Commerce.com, Inc. (CMRC - Free Report) provides an artificial intelligence-driven commerce ecosystem in the United States, Europe, the Middle East, Africa, the Asia Pacific, and internationally. CMRC currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 187.9%, on average.
The Zacks Consensus Estimate for CMRC’s current financial-year sales and earnings indicates growth of 2.7% and 57.7%, respectively, from the year-ago reported numbers.
Central Garden & Pet Company (CENT - Free Report) produces and distributes various products for the lawn and garden, and pet supplies markets in the United States. It currently carries a Zacks Rank of 1.
CENT delivered a trailing four-quarter earnings surprise of 45.4%, on average. The Zacks Consensus Estimate for CENT’s current financial-year sales implies a decline of 5.7%, and the same for earnings implies growth of 5.9% from the year-ago reported numbers.