Chewy raised its 2026 sales outlook to $13.46B to $13.57B after second-quarter revenue reached $3.33B.
Customers are still spending on food, medicine, and supplements, but purchases outside those everyday needs remain under pressure. Treats and toppers have started behaving more like discretionary purchases as households watch their budgets.
“We are not assuming a meaningful consumer recovery.”
Sumit Singh, Chewy
Shares fell this week as softer consumer demand overshadowed the higher annual sales forecast.
Pet essentials keep selling
The active customer base reached 21.7M during the quarter, while net sales per active customer increased.
Adjusted earnings came in at $0.36 per share, matching Wall Street expectations. Net sales landed slightly ahead of consensus.
Third-quarter sales are expected to reach $3.323B to $3.358B, broadly in line with Wall Street estimates heading into the period.
More customers and higher spending per shopper are keeping revenue moving despite weakness elsewhere in the pet aisle. Management described the broader category as stabilized rather than recovered.
Keeping those customers around is becoming more important as discretionary purchases remain soft.
Vet care picks up the slack
Growth outside the traditional pet aisle is starting to carry more weight. Chewy Vet Care posted triple-digit revenue growth, while fresh and frozen products recorded triple-digit unit growth during the quarter.
Autoship accounted for 84.6% of net sales, giving the business a large stream of recurring purchases even as shoppers cut back elsewhere.
The $400M acquisition of Modern Animal closed during the quarter. Modern Animal and SmartPak are both performing ahead of internal expectations as the retailer builds its health and veterinary businesses.
Chewy Plus is getting a redesign in Q3, with health benefits being added to encourage customers to use more of the company’s services.
Consumer spending is expected to remain pressured through year-end. Adjusted Ebitda margin guidance sits at 6.7% to 6.8%.
Pet owners are still filling their carts with what their animals need. Winning more of what they spend beyond the basics is where Chewy has more work to do.