Chewy’s active customer metric has been declining for three straight quarters now. This is a concerning trend for a company that relies heavily on customer growth and retention for its business model.
However, Chewy’s strong revenue growth and improved profitability in the latest quarter seemed to outweigh concerns about customer growth for investors. The stock surge reflected optimism about the company’s ability to continue expanding its customer base and increasing sales.
It will be interesting to see how Chewy addresses its customer growth challenges in the coming quarters, and whether it can sustain its recent momentum in the competitive e-commerce landscape.