Chewy, Inc. CHWY is increasingly positioning Net Sales Per Active Customer (NSPAC) as a core driver of its growth model, complementing steady customer additions with higher spending per user. The company reported NSPAC of $591 in the fourth quarter of fiscal 2025, up 4% year over year, highlighting consistent improvement in customer monetization and engagement.
A major contributor to this growth is the strength of Chewy’s customer cohorts. Newer cohorts from 2024 and 2025 are demonstrating high repeat purchase rates and strong order frequency, with first-year spending trending toward the upper end of $150-$200. Meanwhile, mature cohorts continue to scale steadily, reinforcing the durability of Chewy’s customer value engine.
The company’s expanding health ecosystem remains the most powerful NSPAC accelerator. Services such as veterinary care, pharmacy and fresh food offerings are driving higher spend, with Chewy Vet Care emerging as the fastest NSPAC compounder. These ecosystem-led initiatives not only increase transaction value but also deepen customer relationships, creating a high-retention, high-spend flywheel.
Chewy is also boosting NSPAC through premiumization and private brand expansion. With initiatives like “Chewy Made” and broader consumables offerings, the company is capturing greater wallet share across both value and premium segments. Combined with Autoship adoption and AI-driven personalization, these efforts are increasing purchase frequency, basket size and long-term engagement.
Looking ahead, NSPAC is expected to remain a central pillar of Chewy’s growth algorithm. Management projects fiscal 2026 net sales of $13.6-$13.75 billion, indicating 8-9% year-over-year growth, driven by a combination of active customer additions and continued NSPAC expansion. With multiple levers in place to drive higher customer spend, Chewy is well-positioned to deliver durable revenue growth and sustained competitive advantage.
CHWY’s Price Performance, Valuation & Estimates
Chewy, which competes with BARK, Inc. BARK and Petco Health and Wellness Company, Inc. WOOF, has seen its shares inch up 0.5% in the past month compared with the industry’s growth of 25.6%. Meanwhile, BARK shares have declined 6.5%, while Petco has gained 9.7%.
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From a valuation standpoint, CHWY trades at a trailing price-to-sales ratio of 0.78X, 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 forward 12-month P/S ratio of 0.18) and Petco (0.16).
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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 22.2%. Estimates for fiscal 2026 and 2027 have been revised upward by 2 cents and 1 cent, respectively, in the past 30 days.
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CHWY currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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This article originally published on Zacks Investment Research (zacks.com).