Chewy (CHWY) Reports 192.7% Increase in Net Income

Chewy, Inc. has recently released its 10-Q report, detailing its financial performance for the quarterly period ended April 28, 2024. Chewy, Inc. is a pure-play e-commerce business based in the United States, providing pet food, treats, supplies, medications, and other pet-health products through its retail websites and mobile applications. The company was founded in 2010 and is headquartered in Plantation, Florida.

In the 10-Q report, Chewy, Inc. discussed its management’s discussion and analysis of financial condition and results of operations. The report highlighted key financial and operating data for the 13 weeks ended April 28, 2024, compared to the same period in 2023. The company reported a 3.1% increase in net sales, totaling $2,877,725, compared to $2,790,639 in the previous year. Net income also showed significant growth, reaching $66,897, a 192.7% increase from $22,859 in the prior-year period. The net margin increased to 2.3% from 0.8% in the same period last year.

Adjusted EBITDA, a non-GAAP financial measure, was reported at $162,924, reflecting a 46.9% increase from $110,873 in the first quarter of the previous year. Additionally, the company's adjusted net income reached $137,064, a 55.9% increase from $87,927 in the same period in 2023. The company's earnings per share, both basic and diluted, also showed significant growth, increasing by 200.0% and 55.0% respectively.

Chewy, Inc. reported net cash provided by operating activities at $81,937, a decrease of 44.9% from $148,712 in the first quarter of the previous year. Free cash flow for the period was $52,638, representing a decrease of 58.6% from $127,139 in the same period in 2023.

The company also provided an overview of its macroeconomic considerations and the evolving macroeconomic conditions, including rising inflation and interest rates, which have affected its business and consumer shopping behavior. Chewy, Inc. emphasized that it continues to monitor these conditions closely and adapt aspects of its logistics, transportation, supply chain, and purchasing processes to meet the needs of its growing community of pets, pet parents, and partners.

Chewy, Inc. also discussed its non-GAAP financial measures, including adjusted EBITDA, adjusted net income, and free cash flow, providing detailed explanations and reconciliations to the most directly comparable GAAP financial measures. The company highlighted the importance of these measures in evaluating its operating performance and liquidity.

The market has reacted to these announcements by moving the company's shares 19.2% to a price of $20.16. For more information, read the company's full 10-Q submission here.

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