CHWY's Rising NSPAC Shows Strong Engagement & Premiumization Strategy

Chewy, Inc. CHWY continues to demonstrate strong growth in Net Sales Per Active Customer (NSPAC), highlighting the company’s success in driving deeper engagement and higher spending among existing customers. NSPAC has steadily increased over the past four years, rising from $496 in fiscal 2022 to $555 in fiscal 2023, $567 in fiscal 2024 and $591 in fiscal 2025. This consistent upward trajectory reflects the strength of Chewy’s recurring revenue model, expanding product mix and growing customer loyalty.Management stated that NSPAC expansion remains one of the primary drivers of Chewy’s long-term growth strategy. The company continues to benefit from favorable pet industry trends, including rising pet humanization, premium product adoption, and increased spending on health and wellness categories. Chewy also expects e-commerce penetration in the pet category to continue increasing as consumers prioritize convenience, transparency and recurring delivery services.Chewy’s growing healthcare ecosystem is playing an increasingly important role in boosting NSPAC. The company noted that Chewy Vet Care has emerged as the fastest NSPAC compounder within the business by strengthening engagement with high-value health customers. In fiscal 2025, Chewy expanded its veterinary footprint by opening 10 practices, bringing the total to 18 locations across five states.The company is also leveraging private-brand expansion to further increase customer spending. Through the launch of “Chewy Made,” management plans to broaden its consumables portfolio across dog and cat nutrition categories while introducing products across both premium and value price points. Fresh food and specialty nutrition offerings are already contributing positively to spending trends and customer retention.Chewy’s strong NSPAC growth underscores the durability of its platform and its ability to capture greater wallet share from pet parents. With active customers reaching 21.3 million and Autoship customer sales accounting for 84% of fourth-quarter fiscal 2025 net sales, the company appears well-positioned to sustain profitable growth through continued customer engagement and premiumization initiatives.CHWY’s Price Performance, Valuation & EstimatesChewy, which competes with BARK, Inc. BARK and Petco Health and Wellness Company, Inc. WOOF, has fallen 5.4% in the past three months against the industry’s growth of 21.8%. BARK shares have declined 41.4%, while Petco has gained 16.1% in the same period. Image Source: Zacks Investment Research From a valuation standpoint, CHWY trades at a trailing price-to-sales ratio of 0.68X, below the industry’s average of 2.04X. It has a Value Score of A. CHWY is trading at a premium to BARK (with a forward 12-month P/S ratio of 0.17) and Petco (0.15). Image Source: Zacks Investment Research The Zacks Consensus Estimate for CHWY’s fiscal 2026 earnings implies year-over-year growth of 28.4%, whereas the same for fiscal 2027 indicates an uptick of 23.1%. Estimates for fiscal 2026 and 2027 have been revised upward by 6 cents and 8 cents, respectively, in the past 60 days. Image Source: Zacks Investment Research CHWY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Beyond Nvidia: AI's Second Wave Is HereThe AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. AI’s second wave is moving from infrastructure to implementation and these companies are at the forefront of this transition, positioned to become what Amazon and Google were to the internet era.See Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks