Chewy (CHWY) investor relations material

Strategic evolution and business mix

• Focused on rebuilding supply chain and technical infrastructure, enabling reinvestment into health verticals since 2018.

• Achieved #1 position in online pet pharmacy, capturing 70% of online meds/product spend.

• Entered veterinary health services in 2024, now operating 60 clinics outperforming initial forecasts.

• Incremental growth of $9B over six years, with $4B from health segment.

• Gross margins improved from 18% to 30% since IPO, driven equally by Autoship, health, and supply chain improvements.

Consumer trends and market outlook

• Pet industry experiencing less enthusiasm in discretionary categories, but food and meds remain strong.

• Adoption and relinquishment rates have stabilized, with food and meds outperforming forecasts.

• Dog population growth has slowed, but consumer intent for pet ownership remains robust.

• Breeder market remains strong, with higher prices and steady litter production.

Customer growth and retention

• Growth driven by attracting customers from competitors and net new entrants, despite fewer new pets entering the market.

• Gross adds from existing retailer shoppers now exceed 2019 levels.

• Product innovation in hard goods, pharmacy, and fresh categories has fueled customer acquisition.

• Chewy+ and upcoming product launches expected to sustain net adds of 150,000–250,000 even in a flat market.

• Aspires to high single-digit to low double-digit growth, with net adds and NSPAC as key drivers.