Chewy, Inc. has recently released its 10-Q report, providing a detailed account of its financial and operational performance for the quarterly period ended July 28, 2024. Chewy is a pure play e-commerce business based in the United States, specializing in pet food, treats, supplies, medications, and other pet-health products. The company was founded in 2010 and is headquartered in Plantation, Florida.
In its 10-Q report, Chewy revealed that its net sales for the 13 weeks ended July 28, 2024, amounted to $2.86 billion, marking a 2.6% increase from the same period in the previous year. The company's net income for the same period saw a substantial surge, reaching $299.1 million, compared to $20.2 million in the prior year.
Chewy's adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) for the 13-week period also demonstrated significant growth, totaling $144.8 million, reflecting a 64.3% increase from the previous year. The company's adjusted EBITDA margin, a key measure of operating performance, stood at 5.1% for the period, up from 3.2% in the prior year.
Moreover, Chewy's active customer base remained robust at 20 million, with net sales per active customer increasing by 6.2% to $565. The company's Autoship customer sales, a vital component of its revenue, amounted to $2.24 billion, representing a 5.8% increase from the prior year.
Chewy also provided an overview of its fiscal year, highlighting its 52* or 53-week fiscal year ending each year on the Sunday closest to January 31. Its 2024 fiscal year ends on February 2, 2025, and is a 53-week year, while the 2023 fiscal year ended on January 28, 2024, and was a 52-week year.
The company emphasized the evolving macroeconomic conditions, including inflation and interest rates, and their impact on its business and consumer shopping behavior. Chewy stated it continues to monitor these conditions closely and adapt its logistics, transportation, supply chain, and purchasing processes accordingly to meet the needs of its growing community of pets, pet parents, and partners.
Chewy provided non-GAAP financial measures, including adjusted EBITDA and adjusted net income, to offer investors additional insight into its financial results. The company highlighted that it uses these measures to evaluate its operating performance, generate future operating plans, and make strategic decisions regarding the allocation of capital.
Following these announcements, the company's shares moved 0.2%, and are now trading at a price of $25.86. For more information, read the company's full 10-Q submission here.
