CHEWY INC. DL-,01

Chewy is prioritizing U.S. pet health services—pharmacy, supplements, prescription diets, insurance, telemedicine and veterinary clinics—as its next growth engine while leveraging Autoship, mobile engagement and AI. About one-quarter of customers buy from Chewy Pharmacy, and pharmacy customers add roughly $300–$500 in annual spending; the company operates 60 clinics that are outperforming expectations. Chewy targets 150,000–250,000 net active-customer additions and aims for long-term high-single-digit to low-double-digit revenue growth, planning to self-fund investments and seek about $50 million in AI savings in 2027. Acquisition focus will be health-first, with international expansion a lower priority. » More on finance.yahoo.com

At the Goldman Sachs conference, Chewy announced plans to evolve from a pure pet-supplies retailer into a comprehensive pet-health platform, increasing investment in AI, veterinary clinics and pharmacies. Gross margin has risen from 18% at IPO to around 30%, driven by Autoship, the health business and supply-chain optimizations. Chewy now operates about 60 clinics, plans expansion through acquisitions such as Modern Animal, and intends to use AI tools (Chewy AI) and agentic commerce to boost customer retention and efficiency. Management expects to fund many growth investments from the core business, aims for further margin improvement and is also considering opportunistic M&A in the health sector. » More on de.investing.com

Chewy reported Q2 sales up 7.3% to $3.33 billion, adjusted EPS $0.36 and raised its full-year outlook, but organic revenue growth slowed to 5.7% and adjusted EBITDA outperformance relied on one-time items. Analysts cut ratings and price targets, with Evercore ISI downgrading to In Line amid concerns about a lack of clear growth catalysts and competitive pressure from Amazon and Walmart. The stock has fallen about 48% from its 52-week high and trades near multi-year lows; the report says the shares are only attractive if deceleration proves cyclical and future quarters show organic reacceleration and sustainable margin expansion. » More on finance.yahoo.com