Chewy Customer Growth Picks Up: Higher NSPAC Signals Stronger Spend

Chewy, Inc.’s CHWY active customer base is showing signs of reacceleration after a period of softer engagement. The company ended second-quarter fiscal 2025 with 20.9 million active customers, reflecting a 4.5% year-over-year increase. Moreover, Chewy added 150 thousand customers on a sequential basis. This growth indicates an expanding consumer base.

A key driver of active customer growth is the Autoship subscriptions and Chewy+ program, with Autoship sales rising by nearly 15% to $2.58 billion, surpassing overall revenue growth of 8.6%. Autoship now accounts for 83% of total net sales in the second quarter. The program showed particular strength in high-value categories such as consumables and health, suggesting that core customer spending is increasingly committed to Chewy's platform.

Chewy also saw an increase in customer share of wallet during the quarter, with NSPAC (Net Sales Per Active Customer) up 4.6% year over year to $591. Additionally, Chewy+ members are showing stronger Autoship participation and higher mobile app engagement than non-members. This behavior is translating into robust NSPAC trajectories for Chewy+ customers, ultimately providing a meaningful lift to the company’s overall net sales.

Management highlighted improvements in the rate of gross subscriptions added to Autoships and better retention for second, third, and fourth orders within Autoships. This suggests enhanced customer retention and engagement. As more customers join Autoships and programs like Chewy+, the company's ability to foster customer loyalty and communication strengthens.

Chewy’s second-quarter results indicate that its active customers are beginning to re-accelerate. The high adoption of Autoship, increased NSPAC, and engagement from Chewy+ memberships enhance customer quality and loyalty. With growing wallet share, the company is not only expanding its customer base but also laying a foundation for sustained future growth.

The Zacks Rundown for CHWY

CHWY’s shares have lost 0.6% year to date against the industry’s rise of 4.4%. CHWY carries a Zacks Rank #3 (Hold).

From a valuation standpoint, CHWY trades at a forward price-to-earnings ratio of 46.8, higher than the industry’s average of 23.3.

The Zacks Consensus Estimate for CHWY’s fiscal 2026 and 2027 earnings implies a year-over-year rise of 22.1% and 20.7%, respectively. CHWY delivered a trailing four-quarter earnings surprise of 5.8%, on average.

Stocks to Consider

Some better-ranked stocks have been discussed below:

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The Zacks Consensus Estimate for AEO’s current fiscal-year sales and earnings implies a decline of 0.1% and 35.06%, respectively, from the year-ago figures. AEO delivered a trailing four-quarter earnings surprise of 30.3%, on average.

Boot Barn Holdings, Inc. BOOT operates specialty retail stores in the United States and internationally. At present, Boot Barn holds a Zacks Rank of 2.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year sales and earnings implies growth of 16.2% and 20.5%, respectively, from the year-ago figures. BOOT delivered a trailing four-quarter earnings surprise of 5.4%, on average.

Amazon.com, Inc. AMZN engages in the retail sale of consumer products, advertising, and subscription services through online and physical stores in North America and internationally.  At present, Amazon holds a Zacks Rank of 2.

The Zacks Consensus Estimate for Amazon’s current fiscal-year sales and earnings implies growth of 11.9% and 29.7%, respectively, from the year-ago figures. AMZN delivered a trailing four-quarter earnings surprise of 22.5%, on average.

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This article originally published on Zacks Investment Research (zacks.com).

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