CHWYNEUTRAL

Gross Margin

30.1%

Higher than 42% of Consumer Cyclical sector peers

Updated 22h ago

Sector Performance

42th percentile

CHWY

30.1%

Sector Median

36.3%

Sector Avg

30.6%

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Deep Analysis

Chewy's current gross margin of 30.1% means that for every dollar of revenue, the company keeps about 30 cents after paying for the direct costs of the products it sells—a measure of basic profitability on each sale.

Among Consumer Cyclical sector peers, this figure sits below the sector median of 36.3%, placing Chewy in the 42nd percentile, indicating it lags behind more than half of its competitors on this metric. Over the last eight quarters, the gross margin has been rising, with a quarter-over-quarter increase of 2.4%; a year-over-year change is not available. The combination of a below-median level but an upward trend suggests the company is improving its cost efficiency, which could reduce risk over time if the improvement continues—though the current level still signals a competitive disadvantage relative to peers. This improving but still modest gross margin supports the overall NEUTRAL verdict, as the positive trend is offset by the below-average standing in the sector.

Frequently Asked Questions

What does the Gross Margin tell investors about CHWY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does CHWY's Gross Margin compare to its sector?

CHWY's Gross Margin of 30.1% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 42th percentile.

Who are CHWY's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: BBY (23.5%), BROS (23.1%), TSLA (21.1%), XPEV (20.6%), BWA (19.2%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.