Chewy (CHWY) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Industry trends and digital penetration

• U.S. pet industry TAM is $160 billion, with $150 billion digitally addressable; food and supplies are nearing 40% online penetration, while healthcare is in the mid-teens but expected to grow rapidly.

• E-commerce penetration in food and supplies has doubled over six years; healthcare is 5–8 years behind but catching up.

• Online penetration is projected to reach 45–50% in the next several years, with health verticals becoming increasingly digitized.

• Secular e-commerce trends are expected to continue driving growth, independent of pet household formation.

Growth drivers and share gains

• Holds 8–10% share of total pet industry and 40–42% of e-commerce market, driven by Autoship and health verticals.

• Autoship accounts for nearly 85% of sales, providing predictable, repeatable revenue and high customer engagement.

• Growth algorithm combines new customer acquisition and increased share of wallet, with current share of wallet at $600 per household versus $1,800 industry average.

• Active customer file is guided to grow low single digits, with improving churn and resilient revenue composition.

Macro environment and resilience

• Pet category is resilient due to non-discretionary spend, with 85% of sales from food and meds.

• Consumer sentiment is more stretched recently, but the business remains confident in share gains even in softer macro conditions.

• Macro volatility, including fuel price impacts, is manageable within current profit algorithms.