Chewy, Inc.’s Autoship program saw impressive results in Q2 fiscal 2025, generating $2.58 billion in sales, up 15% YoY, and accounting for 83% of total net sales. This growth is attributed to high-value categories like consumables and health, boosting customer engagement and retention.

Chewy’s gross margin expanded to 30.4%, driven by Autoship and Chewy+ member participation. NSPAC for Chewy+ customers increased by 4.6% YoY to $591, with active customers reaching 20.9 million. Management plans to further expand Autoship and other programs to increase market share and drive growth.

CHWY’s shares have risen 2.1% YTD, with a Zacks Rank #3 (Hold). The stock trades at a forward P/E ratio of 48.3, higher than the industry average of 23.3. The Zacks Consensus Estimate foresees a 22.1% and 20.7% rise in fiscal 2026 and 2027 earnings, respectively.

Among other stocks to consider, American Eagle Outfitters (AEO) and Boot Barn Holdings (BOOT) hold Zacks Rank #2. AEO’s sales and earnings are expected to decline slightly, while BOOT forecasts growth in both. Amazon.com (AMZN) also holds a Zacks Rank #2, with projected sales and earnings growth in the current fiscal year.

Read more at Nasdaq: Here’s How Chewy’s Autoship Is Powering a New Phase of Growth