Chewy, Inc. CHWY delivered a strong performance in the fourth quarter of 2025, marked by improved profitability and margin expansion. The company’s gross margin reached 29.4%, reflecting a year-on-year increase of approximately 90 basis points. This growth was driven by robust sponsored advertisements and a favorable mix shift toward premium, high-margin categories, especially in health and wellness. A more rational promotional environment supported gains through better pricing discipline and reduced reliance on heavy discounting.