Going over some of my holdings to see which, if any, I want to add to. Just realizing now Chewy has seen gross, operating, and net profit margin and free cash flow improvements every year since 2017.
I know active customers slowed dramatically in the recent year but percent of sales via autoship improved to a record, >70% for a full fiscal year for the first time, and net sales per active customer had a massive 15.6% improvement TTM YoY.
They trade at a low trailing and forward P/S for a reason but <1 on forward P/S? I don't know if I can pass that up.
This article from April 2021 on their Net Promoter Score is interesting. I take it with a grain of salt as I don't know the author's motives (besides pushing their proprietary Net Promoter System) but I am one of the Chewy customers who uses them for all my pet needs (3 cats and a big dog), including medicine and autoship. I can confirm their customer service is the best and the prices are very competitive against the likes of Amazon and other pet store brands.
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It definitely seems that $CHWY has fallen from grace recently. I agree that the product and customer service is exceptional, but I think that the competition and limited reach of the business could limit it. I hold $CHWY and plan to for a few more years. I am not planning to add any time soon, though.