Chewy, Inc. expands into pet health services with Chewy Vet Care (CVC) network, driving high-value customer acquisition and ecosystem benefits. CVC clinics outperform expectations in demand generation and value creation, with Vet Care customers showing the highest Net Sales Per Active Customer curves, boosting the network’s value.

CVC customers quickly transition to premium consumables, health items, and pharmacy offerings, supporting Chewy’s Autoship-driven economics and higher gross profit per customer. Chewy’s strategic focus is to connect food, supplies, and pet health offerings seamlessly to serve the entire pet care ecosystem.

Chewy plans to open 8 to 10 new Vet Care practices in fiscal 2025, aiming for a total of 20 clinics by year-end to reinforce its healthcare presence and strengthen ecosystem economics. The integration of healthcare services is expected to enhance profitability and customer loyalty.

Chewy’s shares have declined by 2.1% year-to-date, with a Zacks Rank of #3 (Hold). The company’s forward price-to-earnings ratio of 47.96 is higher than the industry average of 24.17. The Zacks Consensus Estimate for CHWY’s fiscal 2026 and 2027 earnings suggests year-over-year growth.

American Eagle Outfitters, Inc. (AEO) and Boot Barn Holdings, Inc. (BOOT) are better-ranked stocks with Zacks Rank of 2 (Buy). AEO’s fiscal-year sales and earnings are expected to decline, while BOOT’s sales and earnings are projected to grow. Amazon.com, Inc. (AMZN) also holds a Zacks Rank of 2 with growth in sales and earnings forecasted.

Read more at Nasdaq: Is Chewy’s Growing Vet Care Network Its Most Powerful Growth Lever?