Why did CHWY's Q2 2025 earnings meet forecasts exactly?

Chewy's Q2 2025 earnings met forecasts due to strong customer growth and robust top-line performance. Here's a detailed analysis:

1. Customer Growth and Active Customer Numbers: Chewy experienced a significant increase in active customers, ending FY25 with 20.5 million active customers, marking the first year of year-over-year growth since FY23. This growth in active customers contributed to surpassing revenue estimates.
2. Revenue Growth: Net sales for Q4 2024 rose by 14.9% year-over-year to $3.25 billion, exceeding the consensus estimate of $3.2 billion. This robust top-line growth supported by customer growth and Autoship customer loyalty played a crucial role in meeting earnings forecasts.
3. Autoship Program: The Autoship program, which allows customers to schedule recurring deliveries of pet supplies, continued to support sales growth. It accounted for 80.6% of total sales and saw a 21% year-over-year growth. The success of Autoship, a key revenue stream, bolstered Chewy's performance.
4. Strategic Initiatives: Chewy's strategic initiatives, such as the launch of pet clinics, are contributing to its growth. These clinics are part of the company's broader strategy to expand its service offerings and enhance customer loyalty.
5. Market Conditions and Trends: The broader pet industry is expected to grow, and Chewy is capitalizing on this trend. The company benefited from improved market conditions for pet household formation, which has led to higher demand.

In summary, Chewy's Q2 2025 earnings met forecasts due to strong customer growth, particularly from its Autoship program, strategic initiatives, and favorable market conditions in the pet industry.