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Chewy hit record numbers for its third quarter ended Nov. 1.

“In absolute dollar terms, third quarter growth marked the biggest increase we have reported in the company’s history,” said Mario Marte, CFO for Chewy, in a Dec. 8 earnings conference call.

Reported net sales for the quarter reached $1.78 billion, increasing $552.2 million, or 44.9 percent, year-over-year. Year-to-date, net sales were up 46 percent on accelerated customer growth and solid increases in per customer spending, according to Marte.

“Our Q3 results reflect Chewy’s relentless focus on execution and customer experience, coupled with the positive macro trends of accelerated e-commerce migration and increased pet ownership,” said Sumit Singh, CEO of Chewy. “These forces came together yet again to produce another quarter of strong net sales growth.”

Net loss for the quarter was $32.8 million compared to $79 million in the year-ago period, reflecting sales momentum, expanded gross margin and increased operating expense leverage, according to officials.

Third quarter sales from Autoship customers totaled $1.23 billion, representing 69.2 percent of total net sales for the quarter, according to Marte. Chewy defines Autoship customers as customers for whom an order has shipped through its Autoship subscription program during the preceding 364-day period.

“Customer acquisition rate remains healthy and continues to run above pre-pandemic levels,” Marte said.

Chewy reported the addition of 1.2 million net active customers in Q3, ending the quarter with 17.8 million active customers. Year-to-date, Chewy has added 5.1 million active customers, an increase of nearly 40 percent, according to Marte.

“We continue to monitor and be pleased with the purchasing behavior of our 2020 customer cohorts,” Marte said. “The first and second quarter cohorts remain engaged, and the initial engagement levels of the Q3 cohort is consistent with their peers from earlier in the year. Trends in basket size, reorder rates and Autoship sign-up all remain favorable, reflecting the continued success of our assortment and merchandising strategies.”

Net sales per active customers (NSPAC) for the quarter was $363, an increase of 2.8 percent year-over-year, Marte further reported.

Private label was also a strong contributor in the quarter, as private label hard good penetration reached 16 percent, officials reported.

Chewy has also been focusing on growing its pet health and wellness sector.

“As part of our goal to make pet healthcare more affordable and accessible, we recently launched medication compounding and ‘Connect with a Vet,’” Singh and Marte said in a letter to shareholders. “These two innovative ventures are valuable additions to our growing healthcare business and represent our first service-based offerings for pet parents.”

The compounding service, which is offered through Chewy’s pharmacy, where medications are customized to the specific needs of individual pets, is currently available exclusively to pets.

“In the future, we plan to offer this service directly to the veterinarians, so they can offer compound medications directly to their in-clinic patients,” Singh and Marte continued. “In both of these use cases, we seek to pioneer bar-raising customer experiences across a billion-dollar, highly fragmented market.”

Overall, Marte expects fourth quarter net sales to be between $1.94 billion and $1.96 billion, representing year-over-year growth of 43 percent to 45 percent, with full year 2020 net sales to be between $7.04 billion and $7.06 billion, representing year-over-year growth of 45 percent to 46 percent and reflecting over $2.2 billion of incremental net sales added in 2020.

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