PLANTATION, FLA. — Chewy posted another quarter of steady sales growth, but its largest and most mature category — pet consumables — showed signs of moderation as shoppers prioritized core food, fresh and frozen offerings, and health-focused products over treats in the second quarter for the period ended Aug. 2.

Net sales for the second quarter were reported at $3.33 billion, a 7.3% increase from $3.10 billion in the prior year period. Gross profit was $1.01 billion, a 6.1% increase from $942.20 million. Gross margin was 30.4%, consistent year-over-year. 

Net income was $80.5 million, a 29.8% increase from $62 million in the prior year period. Net margin was 2.4%, an increase of 40 basis points from 2%. 

Selling, general and administrative (SG&A) expenses were $704.4 million, a 4.8% increase from $671.9 million. 

Adjusted EBITDA was reported $226.7 million, a 23.7% increase from $183.3 million in the prior year period. Adjusted EBITDA margin was 6.8%, an increase of 90 basis points from 5.9%. 

Chewy’s active customers rose 3.8% from 20.9 million to 21.7 million over the quarter. Net sales per active customer rose 1.9% from $591 to $602. Autoship customer sales rose a significant 9.3% from $2.58 billion to $2.82 billion. 

According to the retailer, it experienced mid-single digit growth in the pet consumables segment, largely influenced by success in the fresh/frozen pet food market. 

“Our fresh and frozen portfolio is meaningfully outpacing the broader category, delivering triple digit unit growth,” shared Summit Singh, chief executive officer of Chewy, during the company’s earnings call on Sept. 9.

Chris Deppe, chief financial officer at Chewy, added, “Industry data suggests that the broader consumables market is broadly flat year-over-year, making Chewy’s mid-single digit growth a healthy level of outperformance.”

However, treat sales slowed sharply over growth in core food, leading to Chewy to believe that pet owners are shifting their priorities from treats to core food offerings, medications, supplements and other more health and wellness-oriented products. Despite this slower growth, consumables remain a significant growth engine for the retailer.

“Consumables remains our largest and more most mature category, and Autoship fuels it with large penetration towards dog, and a very healthy penetration towards cat,” Singh said. 

For the first half of the year, net sales were reported at $6.69 billion, a 7.5% increase from $6.22 billion in the prior year period. Gross profit was $2.02 billion, an 8% increase from $1.87 billion. 

Net income was $175.3 million, a 40.9% increase from $124.4 million in the prior year period. Net margin was 2.6%, an increase from 2%.

SG&A expenses were $1.38 billion, a 3.8% increase from $1.33 billion. 

Adjusted EBITDA was reported at $479.8 million, a 27.6% increase from $376 million in the prior year period. Adjusted EBITDA margin was 7.2%, an increase from 6%.

Autoship customer sales for the first half of the year rose 9.9%, from $5.14 billion to $5.65 billion. 

In addition to its latest financial performance, Chewy also shared its guidance for the third quarter and the fiscal year. For the third quarter, net sales are expected to be between $3.32 billion and $3.36 billion, an increase between 6.6% and 7.7% growth year-over-year. Adjusted EBITDA margin is expected to be between 6.6% and 6.7%. For the 2026 fiscal year, net sales are expected to be between $13.46 billion and $13.57 billion, an increase between 6.8% and 7.7%. Adjusted EBITDA margin is expected to be between 6.7% and 6.8%.

“Chewy delivered a strong second quarter, with growth of 7.3% to $3.33 billion of net sales at the high end of our guidance, and a 6.8% Adjusted EBITDA margin, exceeding our expectations,” Singh said. “The durability of our recurring revenue base, continued customer growth, and disciplined execution give us confidence to raise our full-year revenue and profitability outlook, while continuing to invest in compelling opportunities that deepen customer engagement and create long-term shareholder value.”

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