Chewy Q3 Filing: Surging Profits on Steady Sales Growth

Chewy, the online pet supply giant, just dropped its latest quarterly report, giving us a fresh look at the health of the pet economy and the company's performance. For anyone with a furry friend at home or an interest in e-commerce, digging into their third-quarter 10-Q filing reveals a story of steady growth and, more impressively, strengthening profitability.

Strong Sales Driven by More Than Just Kibble

For the quarter ending November 2, 2025, Chewy fetched $3.1 billion in net sales, an 8.3% increase from the same period last year. This growth demonstrates the company's continued ability to attract and retain pet parents in a competitive market.

A look inside the sales numbers shows a well-rounded performance across its product categories:

• Consumables: This largest segment, which includes pet food and treats, grew 6.5% to $2.2 billion.
• Hardgoods: Sales of items like toys, crates, and leashes saw the most significant jump, rising 17.6% year-over-year to $349 million.
• Other: This category, which encompasses Chewy's high-margin pharmacy business and other services, also posted a healthy 10.1% increase to $592 million.

The strong growth in the higher-margin Hardgoods and Other categories is a positive sign, indicating customers are turning to Chewy for more than just their pet's basic food needs.

From Revenue to Profit: A Story of Efficiency

While growing sales is crucial, turning that revenue into actual profit is what truly signals a healthy business. Here, Chewy showed remarkable progress. The company's net income surged to $59.2 million, a massive leap from just $3.9 million in the year-ago quarter.

This visual flow diagram breaks down how Chewy's revenue translated into profit during the quarter.

As the diagram illustrates, while Chewy reports its revenue by distinct product categories, it manages its cost of goods sold on a consolidated basis. The entire $2.2 billion in costs to acquire its products is not allocated back to the specific segments.

The key to Chewy's boosted profitability lies in its operational efficiency. The company's gross margin improved slightly to 29.8%. More importantly, operating expenses grew at a slower pace (5.5%) than revenue. This control over costs, particularly in selling, general, and administrative expenses, allowed the operating margin to more than double from 0.9% to 2.1%.

In essence, for every dollar of sales, Chewy is keeping more as profit after covering the costs of its products and running the business.

The Bottom Line

Chewy's third-quarter results paint a picture of a maturing e-commerce leader that is successfully balancing growth with profitability. The company is not only selling more but is doing so more efficiently. In the crowded and competitive landscape of online retail and pet supplies, demonstrating this kind of operational leverage is a powerful indicator of a well-managed business steering toward sustainable, long-term success.