Chewy raising price of annual Chewy+ membership, says Mizuho

Mizuho notes that the firm’s checks indicate Chewy (CHWY) is raising the price of its annual Chewy+ membership program to $79 from an initial $49 fee. The firm, which says Street gross margin estimates “still screen a bit elevated to us” at 29.8% in Q3 and 29.2% in Q4, believes that notching the annual membership fee higher at this point “says a lot about the early success of the program” and the incremental top-line opportunity into FY26. The firm keeps an Outperform rating and $50 price target on Chewy shares.