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Equity investors entered the year already concerned about the broader economy, but the Iran war and the potential economic fallout have intensified those worries. A key near-term focus is how a rapid rise in oil prices could affect consumer discretionary spending, particularly after budgets have been pressured by persistently high inflation.
After an earlier steep decline, the stock market has recovered. Through April 14, large-cap stocks measured by the S&P 500 have gained 1.7% for the year. While that performance is modest, it has created an opening for investors to buy growth stocks that have typically lagged in tougher conditions; the S&P 500 Growth Index is up 1.2% this year.
Chewy (CHWY) is often associated with its strong performance during the COVID-19 period, when pet adoption surged. While revenue rose sharply in the early pandemic, the company’s longer-term growth prospects are still viewed as favorable.
Chewy ended fiscal 2025 with 21.3 million active customers, up 4% year over year. Management defines active customers as those who have ordered the company’s products or services at least once in the past year.
Autoship, Chewy’s subscription program, is another central metric because it is designed to add revenue stability and predictability while offering convenience to customers. Autoship customer sales increased 11.8% year over year to $10.5 billion. Autoship sales also rose to 83.3% of total sales last year, compared with 79.2% a year ago.
Revenue growth was 8.3%, adjusted to reflect 52 weeks in both periods, covering the period ended Feb. 1.
Chewy’s customer base provides a platform to broaden its product and service offerings, particularly in healthcare. The company has expanded healthcare services over time, including prescription medications, telehealth, veterinary outsourcing services, and insurance.
More recently, Chewy opened its own clinics. It added 10 clinics last year, bringing the total to 18. The company also announced plans to acquire Modern Animal, which has 29 clinics. Management expects the acquisition to add $125 million in annual sales.
Chewy also has room to expand internationally. The company started offerings in Canada in 2023, indicating that its international footprint is still in early stages.
Despite the customer and growth narrative, Chewy’s stock has fallen this year. The shares are down 21.6%.
With sales growth potentially able to accelerate and the business described as non-cyclical, the stock decline is presented as an opportunity for investors willing to tolerate short-term volatility.
Premium gym chains are entering a “golden era” that is ending or already in decline, as rising operating costs collide with shifting consumer preferences toward more flexible, community-based ways to exercise. Long-term memberships are shrinking, margins are pressured by higher rents and facility expenses, and competition from smaller, more personalized…
