Chewy Inc Q2 2025 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Doug Anmuth - JPMorgan Chase & Co - Analyst : Sumit, can you talk more about the investments that are required in the back half and into 2026 just as you lean into growth, a little bit more detail on those? And then also just how are you promoting and increasing awareness of some of the new offerings like Chewy+ and Get Real?

Question: Nathan Feather - Morgan Stanley - Analyst : One question on the SG&A deleverage. And you may to put some guardrails on the magnitude of temporary costs here and how much maybe we can attribute to some of the FC changes versus the hard good processing costs. And because of that, how should we think about the leverage path into the back half?

Question: David Bellinger - Mizuho Securities USA LLC - Analyst : Hey, everyone. Good morning. Let me just squeeze a few together here. Maybe if we could just start on the Q2 gross margin improvement. You mentioned the premium products. That seemed like somewhat of a shift also maybe talking about some of this price investment in the back half. So can you unpack all that for us and how we should think about the drivers of gross margin expansion in Q3 and Q4? And then also just on the new OpEx investments, can you help us understand, is all this fully in your control and making decisions to further accelerate the top line and share gains versus something more reactionary or something changing in the external marketplace is forcing you to do this. Can you just help us understand that split in Chewy+ and Fresh and Frozen, this might impact the 15% incremental EBITDA margins for the business?

Question: Rupesh Parikh - Oppenheimer & Co Inc - Analyst : So just going back to Get Real and some of your Fresh and Frozen efforts at this juncture, how big do you think the business can go over time? And then I know it's early, but just any characteristics of the initial customers that you're getting into the franchise. And in this sense, are you getting sense of -- do you have a sense of whether you're actually getting new customers just given that launch?