Chewy (CHWY)

The sleeper story is Chewy+ pricing power - raising membership fees 61% with minimal elasticity is extremely rare and suggests they've accidentally discovered a moat. The obvious headline of 8%+ growth is solid but not the story; what matters is they're taking share while building pricing leverage through multiple programs. The binding constraint is management's reluctance to quantify unit economics on their highest-margin initiatives - they've built capacity through 2028 for fresh food and claim 'highest gross profit per unit' but won't prove it with numbers. Singh's quote captures the confidence: 'We do expect customer adds to be durable...we have a very large set of households that we can still touch.' My view changes if they start disclosing actual Chewy+ churn rates or Get Real margins, which would either validate the economics or expose the hype.