Here's a confusing one. This morning we got this set of numbers from Chewy, the online store for pet food and pet supplies that I have told you I like very much. Company reported a modest top and bottom line beat, also raising the low end of their full year forecast. At the same time, though, the guidance for the current quarter seemed to be a little light. Wall Street seems to have a hard time figuring out what to make of these results. Stock initially dropped in premarket trading. Then it came roaring back. It opened almost up 7%, then immediately pulled back from its highs, spending the rest of the day fluctuating between positive and negative territory, the stock ultimately finishing up 1.5%. It was just crazy. So what comes next? Let's check in with Sumit Singh. He's the CEO of Chewy. Get a better read on the quarter where it's going. Mr. Singh, welcome back to Mad Money.
Okay, so first, two years ago, you told us the stock was done going down. It was around $20. That was dead right. It's actually never looked back. I looked at this set of numbers. I didn't find them confusing. You're going about exactly what you said. You're continuing to dominate. You're taking share. You're on plan. Am I right that there's nothing confusing about it?
Yeah, that's exactly right, Jim. We are really proud of the way that the team is executing. So, you know, we grew revenue at 8%. That is more than two times the rate of industry growth in 2025. And profits grew 30%. So three times the revenue growth. Free cash flow continues to accumulate. And we're looking forward to having a great year end.
And I think that's important. When I went out, very positive and ever since been positive. All I ever hear about is, well, Jim, do you understand that Petco has got something like that? Do you understand that Amazon's got something like that? Do you understand that Walmart's got something like that? From what I can tell, you're beating all those guys.
Yeah, Jim, you know, pets as you and I have always appreciated is a super emotive category. And in an emotive category like this, when you show up with being best in class in what we do, which is e-commerce, but then we deliver service levels that you can only expect at the best local neighborhood pet stores, it kind of is the best of two worlds. It's the combination of scale and convenience of e-commerce and the personalization on top of that. So we have a very durable set of mechanisms. Autoship. You and I talked about Autoship in 2019 and it was at 60% levels. We are now pushing over 84% of our sales through this quasi subscription program. And since then, we've built a health ecosystem that continues to pull more customers, drive greater retention, and drive us towards premium growth and profitability. So overall, I feel like we've got a pretty good, durable and differentiated set of levels.
I totally agree. Now, there was this kind of a let's go over what the next quarter really meant. I felt you said you're going to spend in order to be able to prudently grow. Other people were saying they have to spend because they have to spend or they're spending out of defense. But again, this is one where you have taught us, look, we have to spend, we want to continue to grow. And there's really nothing more than that.
Yeah, I think there's a couple of messages that should be heard very, very loudly. One, you know, we are growing. We're aggregating share across the industry growing at more than two times the market. Number two, you know, Chewy does not require investment to continue to deliver growing levels of top line. And then three, it's not top line or bottom line for us. It's both. We are simultaneously delivering top line expansion at the same time we're growing our margins. I mean, we delivered 100 basis points or 30% in profit growth in Q3 and for the year, we're going to deliver north of 25% profit growth, while converting 80% of those profits into free cash flow.
We're loving Chewy Plus. So it's a program that is meant to give customers a chance to really get to know all of the offerings at Chewy in a very simple manner. It aggregates share of wallet very quickly for us, and it is really primed to help us consolidate basket sizes and drive customer satisfaction and value back to consumers while consolidating share of wallet towards us. And so, you know, early days, we've been at it for about six months. And we like the results so far.
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Singh, S. (2025, December 10). Chewy CEO Sumit Singh goes one-on-one with Jim Cramer [Interview transcript]. CNBC Television. CEOInterviews.AI. https://ceointerviews.ai/interview/558222/
MLA
Sumit Singh. "Chewy CEO Sumit Singh goes one-on-one with Jim Cramer." CNBC Television, 10 Dec. 2025. Transcript, CEOInterviews.AI, https://ceointerviews.ai/interview/558222/.
BibTeX
@misc{singh2025_558222,
author = {Sumit Singh},
title = {Chewy CEO Sumit Singh goes one-on-one with Jim Cramer},
howpublished = {Interview transcript, CNBC Television. CEOInterviews.AI},
year = {2025},
month = {dec},
url = {https://ceointerviews.ai/interview/558222/},
note = {Speaker-attributed transcript with timestamps}
}
