On Wednesday, Chewy, Inc. (NYSE:CHWY) reported first-quarter results that topped Wall Street expectations on both earnings and revenue, but the online pet retailer lowered its fiscal 2026 sales outlook, citing a more cautious consumer spending environment.

Earnings And Margins Top Expectations

Adjusted earnings came in at 43 cents per share, ahead of the 39-cent consensus estimate. Net sales increased 7.7% year over year to $3.357 billion, exceeding analyst expectations of $3.352 billion.

GAAP net income rose to $94.8 million from $62.4 million a year earlier, while GAAP basic and diluted earnings per share increased to 23 cents from 15 cents.

Adjusted net income climbed to $179.9 million from $148.9 million. Adjusted EBITDA increased 31.3% year over year to $253.1 million, and adjusted EBITDA margin expanded 130 basis points to 7.5%.

Gross margin improved 50 basis points to 30.1%, while net margin increased 80 basis points to 2.8%.

Customer Growth And Cash Flow Strengthen

Active customers grew 3.6% year over year to 21.5 million, with nearly 200,000 net additions during the quarter. Net sales per active customer increased 2.4% to $597.

Autoship customer sales rose ...