Chewy, Inc. CHWY is increasingly leveraging its veterinary care operations as a powerful tool for customer acquisition and retention. Management highlighted that Chewy Vet Care (“CVC”) clinics are delivering strong stand-alone economics, while strengthening the broader Chewy ecosystem. The company views pet healthcare as a major growth opportunity, with an estimated total addressable market of approximately $54 billion, including more than $40 billion tied to veterinary services and in-clinic products.
The company’s vet care strategy is already generating meaningful customer growth. According to management, roughly 40% of CVC customers are new to Chewy. These customers tend to become highly valuable over time, reaching approximately $900 in first-year net sales per active customer. In addition, existing Chewy customers who visit CVC clinics increase their share of wallet with the company at a faster rate than other customer groups, highlighting the effectiveness of the clinics in driving deeper customer engagement.
Chewy believes its technology-enabled operating model provides an advantage in veterinary services. The company utilizes AI-assisted tools and digital workflows to improve clinic productivity, veterinarian retention and employee satisfaction. Management noted that these capabilities are particularly important in an environment where qualified veterinarians remain in short supply, giving Chewy a structural advantage as it expands its clinic network.
To accelerate growth, Chewy recently completed the acquisition of Modern Animal, a technology-focused veterinary clinic operator. The transaction adds an established clinic footprint, strong clinical expertise and attractive unit economics that complement the Chewy Vet Care model. Following the acquisition, the company expects to operate approximately 60 clinics by the end of fiscal 2026, significantly expanding its presence in the pet healthcare market.
Management views veterinary care as one of the fastest-growing contributors to customer spending and long-term value creation. By integrating clinics with its pharmacy, healthcare and e-commerce offerings, Chewy is building a more comprehensive pet-care platform. As the clinic footprint expands and customer adoption grows, Chewy expects Vet Care to play an increasingly important role in driving customer acquisition, retention and market-share gains over the long term.
CHWY’s Price Performance, Valuation & Estimates
Chewy, which competes with BARK, Inc. BARK and Petco Health and Wellness Company, Inc. WOOF, has fallen 23.2% in the past three months against the industry’s growth of 6.1%. Meanwhile, BARK shares have declined 41% and Petco has dipped 18.8%.
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From a valuation standpoint, CHWY trades at a trailing price-to-sales ratio of 0.63X, below the industry’s average of 2.16X. It has a Value Score of A. CHWY is trading at a premium to BARK (with a trailing 12-month P/S ratio of 0.21) and Petco (0.13).
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The Zacks Consensus Estimate for CHWY’s fiscal 2026 and 2027 earnings implies year-over-year growth of 23.6% each. Estimates for fiscal 2026 and 2027 have been revised downward by 4 cents each in the past seven days.
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CHWY currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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