What drove CHWY's earnings growth in Q3 2025?

Chewy's earnings growth in Q3 2025 was primarily driven by strong customer growth and robust sales performance across its key customer programs: 1. **Active Customer Growth**: Chewy experienced a notable increase in active customers, growing to 20.5 million. This marked the first positive growth in customer numbers in approximately two years. 2. **Autoship Program Expansion**: The Autoship program, which allows customers to schedule recurring deliveries of pet supplies, saw significant growth. Autoship customer sales reached $2.62 billion in Q4, marking a 21.2% year-over-year increase, and accounted for 80.6% of total sales. This program provides predictable, subscription-like revenue streams, contributing to overall sales and customer loyalty. 3. **Strategic Initiatives**: Chewy's strategic initiatives, such as the launch of Chewy Vet Care Clinics and a membership program, have been instrumental in attracting and retaining customers. These efforts enhance market share and customer stickiness. 4. **Market Trends and Consumer Behavior**: Despite broader consumer spending headwinds, the pet care sector remains resilient, and Chewy is positioned to capitalize on this trend. The company's focus on online sales and subscription models aligns well with the growing preference for convenient, recurring purchases. In summary, Chewy's earnings growth in Q3 2025 is attributed to active customer growth, the expansion of its Autoship program, strategic initiatives, and favorable market conditions in the pet industry.