Chewy's Earnings and Growth Challenges

Chewy, an online pet food retailer, is facing challenges in growing its customer base. While their auto-ship subscription service accounts for 76% of their business, their customer count has declined by 1%. Although net sales per customer have increased by 14%, the company needs to attract more customers to sustain growth. The COVID-19 pandemic led to a surge in pet adoption and increased spending on pet-related products. However, Chewy's stock price has suffered as the growth was seen as a short-term trend rather than a long-term shift in consumer behavior. The company is banking on the concept of pet humanization and the belief that customers treat their pets like family. However, there is a limit to how much customers are willing to spend, and competition from other retailers and online sales pose a threat to Chewy's growth.