Chewy Announces Fiscal Fourth Quarter and Full Year 2024 Financial Results
Chewy (NYSE: CHWY) has announced its fiscal Q4 and full year 2024 financial results, showing strong performance across key metrics. Q4 net sales reached $3.25 billion, up 14.9% year-over-year, with gross margin expanding 30 basis points to 28.5%. The quarter saw net income of $22.8 million and adjusted EBITDA of $124.5 million.
For full year 2024, net sales grew 6.4% to $11.86 billion, with gross margin improving 80 basis points to 29.2%. Net income reached $392.7 million, with net margin expanding 290 basis points to 3.3%. The company's adjusted EBITDA increased by $202.5 million to $570.5 million, while adjusted EBITDA margin expanded 150 basis points to 4.8%.
CEO Sumit Singh highlighted that both topline growth and profitability exceeded guidance ranges, driven by strong active customer growth and Autoship customer loyalty.
Chewy (NYSE: CHWY) ha annunciato i risultati finanziari del quarto trimestre e dell'intero anno fiscale 2024, mostrando una forte performance su metriche chiave. Le vendite nette del Q4 hanno raggiunto i 3,25 miliardi di dollari, in aumento del 14,9% rispetto all'anno precedente, con un margine lordo che si è ampliato di 30 punti base al 28,5%. Nel trimestre si è registrato un reddito netto di 22,8 milioni di dollari e un EBITDA rettificato di 124,5 milioni di dollari.
Per l'anno intero 2024, le vendite nette sono cresciute del 6,4% a 11,86 miliardi di dollari, con un margine lordo migliorato di 80 punti base al 29,2%. Il reddito netto ha raggiunto i 392,7 milioni di dollari, con un margine netto che si è ampliato di 290 punti base al 3,3%. L'EBITDA rettificato dell'azienda è aumentato di 202,5 milioni di dollari a 570,5 milioni di dollari, mentre il margine EBITDA rettificato è aumentato di 150 punti base al 4,8%.
Il CEO Sumit Singh ha sottolineato che sia la crescita del fatturato che la redditività hanno superato le previsioni, sostenute da una forte crescita del numero di clienti attivi e dalla fedeltà dei clienti Autoship.
Chewy (NYSE: CHWY) ha anunciado sus resultados financieros del cuarto trimestre y del año fiscal 2024, mostrando un rendimiento sólido en métricas clave. Las ventas netas del Q4 alcanzaron los 3.25 mil millones de dólares, un aumento del 14.9% en comparación con el año anterior, con un margen bruto que se expandió 30 puntos básicos al 28.5%. En el trimestre se registró un ingreso neto de 22.8 millones de dólares y un EBITDA ajustado de 124.5 millones de dólares.
Para el año completo 2024, las ventas netas crecieron un 6.4% a 11.86 mil millones de dólares, con un margen bruto mejorado en 80 puntos básicos al 29.2%. El ingreso neto alcanzó los 392.7 millones de dólares, con un margen neto que se expandió 290 puntos básicos al 3.3%. El EBITDA ajustado de la compañía aumentó en 202.5 millones de dólares a 570.5 millones de dólares, mientras que el margen de EBITDA ajustado se expandió en 150 puntos básicos al 4.8%.
El CEO Sumit Singh destacó que tanto el crecimiento de ingresos como la rentabilidad superaron las expectativas, impulsados por un fuerte crecimiento en el número de clientes activos y la lealtad de los clientes de Autoship.
Chewy (NYSE: CHWY)는 2024 회계 연도 4분기 및 전체 연도 재무 결과를 발표하며 주요 지표에서 강력한 성과를 보여주었습니다. 4분기 순매출은 32억 5천만 달러에 달하며, 전년 대비 14.9% 증가하였고, 총 마진은 30 베이시스 포인트 확대되어 28.5%에 도달했습니다. 이 분기 동안 순이익은 2천 280만 달러, 조정 EBITDA는 1억 2천 450만 달러에 달했습니다.
2024 전체 연도에 대해 순매출은 6.4% 증가하여 118억 6천만 달러에 이르렀고, 총 마진은 80 베이시스 포인트 개선되어 29.2%에 달했습니다. 순이익은 3억 9천 270만 달러에 도달하며, 순 마진은 290 베이시스 포인트 확대되어 3.3%에 이르렀습니다. 회사의 조정 EBITDA는 2억 2천 500만 달러 증가하여 5억 7천 500만 달러에 도달하였고, 조정 EBITDA 마진은 150 베이시스 포인트 확대되어 4.8%에 도달했습니다.
CEO Sumit Singh은 매출 성장과 수익성이 모두 가이던스 범위를 초과하였으며, 이는 강력한 활성 고객 성장과 Autoship 고객 충성도에 의해 주도되었다고 강조했습니다.
Chewy (NYSE: CHWY) a annoncé ses résultats financiers du quatrième trimestre et de l'année fiscale 2024, montrant une performance solide sur des indicateurs clés. Les ventes nettes du Q4 ont atteint 3,25 milliards de dollars, en hausse de 14,9 % par rapport à l'année précédente, avec une marge brute qui s'est élargie de 30 points de base à 28,5 %. Au cours du trimestre, le bénéfice net s'est élevé à 22,8 millions de dollars et l'EBITDA ajusté à 124,5 millions de dollars.
Pour l'année complète 2024, les ventes nettes ont augmenté de 6,4 % pour atteindre 11,86 milliards de dollars, avec une marge brute améliorée de 80 points de base à 29,2 %. Le bénéfice net a atteint 392,7 millions de dollars, avec une marge nette qui s'est élargie de 290 points de base à 3,3 %. L'EBITDA ajusté de l'entreprise a augmenté de 202,5 millions de dollars pour atteindre 570,5 millions de dollars, tandis que la marge EBITDA ajustée s'est élargie de 150 points de base à 4,8 %.
Le PDG Sumit Singh a souligné que la croissance du chiffre d'affaires et la rentabilité ont dépassé les prévisions, soutenues par une forte croissance du nombre de clients actifs et la fidélité des clients Autoship.
Chewy (NYSE: CHWY) hat seine finanziellen Ergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2024 bekannt gegeben, die eine starke Leistung in den wichtigsten Kennzahlen zeigen. Die Nettoverkäufe im Q4 betrugen 3,25 Milliarden Dollar, was einem Anstieg von 14,9% im Vergleich zum Vorjahr entspricht, während die Bruttomarge um 30 Basispunkte auf 28,5% anstieg. Im Quartal wurde ein Nettogewinn von 22,8 Millionen Dollar und ein bereinigtes EBITDA von 124,5 Millionen Dollar erzielt.
Im gesamten Jahr 2024 stiegen die Nettoverkäufe um 6,4% auf 11,86 Milliarden Dollar, wobei sich die Bruttomarge um 80 Basispunkte auf 29,2% verbesserte. Der Nettogewinn erreichte 392,7 Millionen Dollar, während die Nettomarge um 290 Basispunkte auf 3,3% anstieg. Das bereinigte EBITDA des Unternehmens stieg um 202,5 Millionen Dollar auf 570,5 Millionen Dollar, während die bereinigte EBITDA-Marge um 150 Basispunkte auf 4,8% anstieg.
CEO Sumit Singh hob hervor, dass sowohl das Umsatzwachstum als auch die Rentabilität die Prognosen übertrafen, was auf das starke Wachstum der aktiven Kunden und die Loyalität der Autoship-Kunden zurückzuführen ist.
- Q4 net sales grew 14.9% YoY to $3.25 billion
- Full year gross margin expanded 80 basis points to 29.2%
- FY2024 net income reached $392.7 million
- Net margin expanded 290 basis points to 3.3% for FY2024
- Adjusted EBITDA increased by $202.5 million to $570.5 million in FY2024
- Q4 net margin declined 40 basis points year over year
- Q4 basic EPS decreased $0.01 year over year
- Q4 diluted EPS decreased $0.02 year over year
Insights
Chewy's Q4 results exceeded the high-end of guidance with
Profitability showed mixed but generally positive signals. While Q4 net margin declined slightly to
For the full year, Chewy delivered substantial margin improvements across all metrics. Gross margin expanded 80 basis points to
The company's customer metrics are equally impressive. Management highlighted "strong active customer growth" and "compelling Autoship customer loyalty" as key drivers. Autoship is particularly valuable as it generates recurring revenue and higher lifetime customer value. Chewy's scale continues to expand with approximately 130,000 product offerings and partnerships with around 3,200 brands.
This report demonstrates Chewy's ability to drive both growth and improving profitability simultaneously – a challenging balance in retail. The acceleration in Q4 growth rates positions the company well for continued momentum in 2025.
Fiscal Q4 2024 Results (1):
-
Net sales of
improved 14.9 percent year over year$3.25 billion - Gross margin of 28.5 percent expanded 30 basis points year over year
-
Net income of
, including share-based compensation expense and related taxes of$22.8 million $99.7 million - Net margin of 0.7 percent declined 40 basis points year over year
-
Basic earnings per share of
, a decrease of$0.06 year over year$0.01 -
Diluted earnings per share of
, a decrease of$0.05 year over year$0.02 -
Adjusted EBITDA (2) of
, an increase of$124.5 million year over year$38.1 million - Adjusted EBITDA margin (2) of 3.8 percent expanded 70 basis points year over year
-
Adjusted net income (2) of
, an increase of$120.0 million year over year$39.7 million -
Adjusted basic earnings per share (2) of
, an increase of$0.29 year over year$0.10 -
Adjusted diluted earnings per share (2) of
, an increase of$0.28 year over year$0.10
Fiscal 2024 Results (1):
-
Net sales of
improved 6.4 percent year over year$11.86 billion - Gross margin of 29.2 percent expanded 80 basis points year over year
-
Net income of
, including share-based compensation expense and related taxes of$392.7 million $332.1 million - Net margin of 3.3 percent expanded 290 basis points year over year
-
Basic earnings per share of
, an increase of$0.93 year over year$0.84 -
Diluted earnings per share of
, an increase of$0.91 year over year$0.82 -
Adjusted EBITDA (2) of
, an increase of$570.5 million year over year$202.5 million - Adjusted EBITDA margin (2) of 4.8 percent expanded 150 basis points year over year
-
Adjusted net income (2) of
, an increase of$446.8 million year over year$150.6 million -
Adjusted basic earnings per share (2) of
, an increase of$1.06 year over year$0.37 -
Adjusted diluted earnings per share (2) of
, an increase of$1.04 year over year$0.35
“Topline growth and profitability exceeded the high-end of our guidance ranges for both the fourth quarter and full year 2024,” said Sumit Singh, Chief Executive Officer of Chewy. “Our performance was underpinned by strong active customer growth, and compelling Autoship customer loyalty. As we embark on 2025, the momentum in the business has remained strong and we remain committed to executing Chewy’s strategic priorities as we continue to drive innovation across the pet category.”
Management will host a conference call and webcast to discuss Chewy’s financial results today at 8:00 am ET.
Chewy Fiscal Fourth Quarter and Full Year 2024 Financial Results Conference Call
When: Wednesday, March 26, 2025
Time: 8:00 am ET
Live webcast and replay: https://investor.chewy.com
Conference call registration: https://events.q4inc.com/attendee/666747821
(1) |
Includes the impact of the 14th and 53rd week in Q4 and Fiscal Year 2024, respectively. |
(2) |
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, and adjusted basic and diluted earnings per share are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures. |
About Chewy
Our mission is to be the most trusted and convenient destination for pet parents and partners everywhere. We believe that we are the preeminent online source for pet products, supplies and prescriptions as a result of our broad selection of high-quality products and services, which we offer at competitive prices and deliver with an exceptional level of care and a personal touch to build brand loyalty and drive repeat purchasing. We seek to continually develop innovative ways for our customers to engage with us, as our websites and mobile applications allow our pet parents to manage their pets’ health, wellness, and merchandise needs, while enabling them to conveniently shop for our products. We partner with approximately 3,200 of the best and most trusted brands in the pet industry, and we create and offer our own private brands. Through our websites and mobile applications, we offer our customers approximately 130,000 products and services offerings, to bring what we believe is a high-bar, customer-centric experience to our customers.
Forward-Looking Statements
This communication contains forward-looking statements about us and our industry that involve substantial risks and uncertainties. All statements other than statements of historical facts contained in this communication, including statements regarding our share repurchase program, our future results of operations or financial condition, business strategy and plans and objectives of management for future operations, are forward-looking statements. In some cases, you can identify forward-looking statements because they contain words such as “anticipate,” “believe,” “contemplate,” “continue,” “could,” “estimate,” “expect,” “forecast,” “intend,” “may,” “plan,” “potential,” “predict,” “project,” “seek,” “should,” “target,” “will” or “would” or the negative of these words or other similar terms or expressions, although not all forward-looking statements contain these identifying words.
Although we believe that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could cause actual results to differ materially from those in such forward-looking statements, including but not limited to, our ability to: sustain our recent growth rates and successfully manage challenges to our future growth, including introducing new products or services, improving existing products and services, and expanding into new jurisdictions and offerings; successfully respond to business disruptions; successfully manage risks related to the macroeconomic environment, including any adverse impacts on our business operations, financial performance, supply chain, workforce, facilities, customer services and operations; acquire and retain new customers in a cost-effective manner and increase our net sales, improve margins and maintain profitability; manage our growth effectively; maintain positive perceptions of the Company and preserve, grow, and leverage the value of our reputation and our brand; limit operating losses as we continue to expand our business; forecast net sales and appropriately plan our expenses in the future; estimate our market share; strengthen our current supplier relationships, retain key suppliers, and source additional suppliers; negotiate acceptable pricing and other terms with third-party service providers, suppliers and outsourcing partners and maintain our relationships with such parties; mitigate changes in, or disruptions to, our shipping arrangements and operations; optimize, operate and manage the expansion of the capacity of our fulfillment centers; provide our customers with a cost-effective platform that is able to respond and adapt to rapid changes in technology; limit our losses related to online payment methods; maintain and scale our technology, the reliability of our websites, mobile applications, and network infrastructure, including through the use of artificial intelligence; maintain adequate cybersecurity with respect to our systems and retain third-party service providers that do the same with respect to their systems; maintain consumer confidence in the safety, quality and health of our products; limit risks associated with our suppliers and our outsourcing partners; comply with existing or future laws and regulations in a cost-efficient manner; utilize net operating loss and tax credit carryforwards, and other tax attributes; adequately protect our intellectual property rights; successfully defend ourselves against any allegations or claims that we may be subject to; attract, develop, motivate and retain highly-qualified and skilled employees; respond to economic conditions, industry trends, and market conditions, and their impact on the pet products market; reduce merchandise returns or refunds; respond to severe weather and limit disruption to normal business operations; manage new acquisitions, investments or alliances, and integrate them into our existing business; successfully compete in new offerings; manage challenges presented by international markets; successfully compete in the pet products and services health and retail industry, especially in the e-commerce sector; comply with the terms of our credit facility; raise capital as needed; and maintain effective internal control over financial reporting.
You should not rely on forward-looking statements as predictions of future events, and you should understand that these statements are not guarantees of performance or results, and our actual results could differ materially from those expressed in the forward-looking statements due to a variety of factors. We have based the forward-looking statements contained in this communication primarily on our current assumptions, expectations, and projections about future events and trends that we believe may affect our business, financial condition, and results of operations. The outcome of the events described in these forward-looking statements is subject to risks, uncertainties and other factors described in the section titled “Risk Factors” included in Part I, Item 1A of our Annual Report on Form 10-K and in our other filings with the Securities and Exchange Commission, and elsewhere in this communication. Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this communication. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements. In addition, statements that “we believe” and similar statements reflect our beliefs and opinions on the relevant subject. These statements are based on information available to us as of the date of this communication. While we believe that such information provides a reasonable basis for these statements, this information may be limited or incomplete. Our statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all relevant information. These statements are inherently uncertain, and investors are cautioned not to unduly rely on these statements. The forward-looking statements made in this communication relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statements made in this communication to reflect events or circumstances after the date of this communication or to reflect new information or the occurrence of unanticipated events, except as required by law. We may not actually achieve the plans, intentions or expectations disclosed in our forward-looking statements, and you should not place undue reliance on our forward-looking statements. Our forward-looking statements do not reflect the potential impact of any future acquisitions, mergers, dispositions, joint ventures or investments.
CHEWY, INC. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) |
|||||||
|
As of |
||||||
|
February 2,
|
|
January 28,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
595,765 |
|
|
$ |
602,232 |
|
Marketable securities |
|
899 |
|
|
|
531,785 |
|
Accounts receivable |
|
169,031 |
|
|
|
154,043 |
|
Inventories |
|
836,695 |
|
|
|
719,273 |
|
Prepaid expenses and other current assets |
|
59,976 |
|
|
|
97,015 |
|
Total current assets |
|
1,662,366 |
|
|
|
2,104,348 |
|
Property and equipment, net |
|
562,180 |
|
|
|
521,298 |
|
Operating lease right-of-use assets |
|
450,393 |
|
|
|
474,617 |
|
Goodwill |
|
39,442 |
|
|
|
39,442 |
|
Deferred tax assets |
|
257,453 |
|
|
|
— |
|
Other non-current assets |
|
42,693 |
|
|
|
47,146 |
|
Total assets |
$ |
3,014,527 |
|
|
$ |
3,186,851 |
|
Liabilities and stockholders’ equity |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Trade accounts payable |
$ |
1,175,869 |
|
|
$ |
1,104,940 |
|
Accrued expenses and other current liabilities |
|
1,030,854 |
|
|
|
1,005,937 |
|
Total current liabilities |
|
2,206,723 |
|
|
|
2,110,877 |
|
Operating lease liabilities |
|
502,404 |
|
|
|
527,795 |
|
Other long-term liabilities |
|
43,941 |
|
|
|
37,935 |
|
Total liabilities |
|
2,753,068 |
|
|
|
2,676,607 |
|
Stockholders’ equity: |
|
|
|
||||
Preferred stock, |
|
— |
|
|
|
— |
|
Class A common stock, |
|
1,939 |
|
|
|
1,329 |
|
Class B common stock, |
|
2,197 |
|
|
|
2,989 |
|
Additional paid-in capital |
|
1,840,160 |
|
|
|
2,481,984 |
|
Accumulated deficit |
|
(1,582,914 |
) |
|
|
(1,975,652 |
) |
Accumulated other comprehensive income (loss) |
|
77 |
|
|
|
(406 |
) |
Total stockholders’ equity |
|
261,459 |
|
|
|
510,244 |
|
Total liabilities and stockholders’ equity |
$ |
3,014,527 |
|
|
$ |
3,186,851 |
|
CHEWY, INC. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (in thousands, except per share data) |
|||||||||||||||
|
14 Weeks
|
|
13 Weeks
|
|
53 Weeks
|
|
52 Weeks
|
||||||||
|
February 2,
|
|
January 28,
|
|
February 2,
|
|
January 28,
|
||||||||
|
|
|
|
|
|
||||||||||
Net sales |
$ |
3,247,386 |
|
|
$ |
2,825,904 |
|
|
$ |
11,861,335 |
|
|
$ |
11,147,720 |
|
Cost of goods sold |
|
2,321,383 |
|
|
|
2,027,819 |
|
|
|
8,393,631 |
|
|
|
7,986,202 |
|
Gross profit |
|
926,003 |
|
|
|
798,085 |
|
|
|
3,467,704 |
|
|
|
3,161,518 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Selling, general and administrative |
|
700,705 |
|
|
|
626,030 |
|
|
|
2,551,004 |
|
|
|
2,442,683 |
|
Advertising and marketing |
|
235,010 |
|
|
|
194,036 |
|
|
|
804,113 |
|
|
|
742,460 |
|
Total operating expenses |
|
935,715 |
|
|
|
820,066 |
|
|
|
3,355,117 |
|
|
|
3,185,143 |
|
(Loss) income from operations |
|
(9,712 |
) |
|
|
(21,981 |
) |
|
|
112,587 |
|
|
|
(23,625 |
) |
Interest income, net |
|
3,723 |
|
|
|
31,384 |
|
|
|
35,068 |
|
|
|
58,501 |
|
Other income, net |
|
3,292 |
|
|
|
27,122 |
|
|
|
4,038 |
|
|
|
13,354 |
|
(Loss) income before income tax (benefit) provision |
|
(2,697 |
) |
|
|
36,525 |
|
|
|
151,693 |
|
|
|
48,230 |
|
Income tax (benefit) provision |
|
(25,489 |
) |
|
|
4,639 |
|
|
|
(241,045 |
) |
|
|
8,650 |
|
Net income |
$ |
22,792 |
|
|
$ |
31,886 |
|
|
$ |
392,738 |
|
|
$ |
39,580 |
|
|
|
|
|
|
|
|
|
||||||||
Other comprehensive income |
|
|
|
|
|
|
|
||||||||
Net income |
$ |
22,792 |
|
|
$ |
31,886 |
|
|
$ |
392,738 |
|
|
$ |
39,580 |
|
Foreign currency translation adjustments |
|
(587 |
) |
|
|
(406 |
) |
|
|
483 |
|
|
|
(406 |
) |
Comprehensive income |
$ |
22,205 |
|
|
$ |
31,480 |
|
|
$ |
393,221 |
|
|
$ |
39,174 |
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share attributable to common Class A and Class B stockholders: |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.06 |
|
|
$ |
0.07 |
|
|
$ |
0.93 |
|
|
$ |
0.09 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.91 |
|
|
$ |
0.09 |
|
Weighted-average common shares used in computing earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
407,834 |
|
|
|
431,600 |
|
|
|
421,351 |
|
|
|
429,457 |
|
Diluted |
|
424,125 |
|
|
|
433,942 |
|
|
|
430,990 |
|
|
|
432,040 |
|
CHEWY, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) |
|||||||
|
53 Weeks
|
|
52 Weeks
|
||||
|
February 2,
|
|
January 28,
|
||||
Cash flows from operating activities |
|
|
|
||||
Net income |
$ |
392,738 |
|
|
$ |
39,580 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
||||
Depreciation and amortization |
|
114,557 |
|
|
|
109,693 |
|
Share-based compensation expense |
|
306,435 |
|
|
|
239,107 |
|
Non-cash lease expense |
|
32,951 |
|
|
|
37,818 |
|
Change in fair value of equity warrants and investments |
|
(1,504 |
) |
|
|
(13,069 |
) |
Deferred income tax benefit |
|
(257,453 |
) |
|
|
— |
|
Unrealized foreign currency losses (gains), net |
|
1,122 |
|
|
|
(391 |
) |
Other |
|
1,049 |
|
|
|
3,914 |
|
Net change in operating assets and liabilities: |
|
|
|
||||
Accounts receivable |
|
(15,069 |
) |
|
|
(27,072 |
) |
Inventories |
|
(117,814 |
) |
|
|
(41,259 |
) |
Prepaid expenses and other current assets |
|
(14,049 |
) |
|
|
(50,099 |
) |
Other non-current assets |
|
3,543 |
|
|
|
(29,942 |
) |
Trade accounts payable |
|
71,080 |
|
|
|
71,762 |
|
Accrued expenses and other current liabilities |
|
109,682 |
|
|
|
152,329 |
|
Operating lease liabilities |
|
(32,018 |
) |
|
|
(27,179 |
) |
Other long-term liabilities |
|
1,075 |
|
|
|
21,019 |
|
Net cash provided by operating activities |
|
596,325 |
|
|
|
486,211 |
|
Cash flows from investing activities |
|
|
|
||||
Capital expenditures |
|
(143,831 |
) |
|
|
(143,282 |
) |
Proceeds from sales and maturities of marketable securities |
|
538,402 |
|
|
|
3,078,000 |
|
Purchases of marketable securities |
|
— |
|
|
|
(3,221,714 |
) |
Cash paid for acquisition of business, net of cash acquired |
|
— |
|
|
|
(367 |
) |
Net cash provided by (used in) investing activities |
|
394,571 |
|
|
|
(287,363 |
) |
Cash flows from financing activities |
|
|
|
||||
Repurchases of common stock |
|
(942,848 |
) |
|
|
— |
|
Income taxes paid for, net of proceeds from, parent reorganization transaction |
|
(51,949 |
) |
|
|
60,601 |
|
Payments of secondary offering costs |
|
(1,066 |
) |
|
|
— |
|
Principal repayments of finance lease obligations |
|
(866 |
) |
|
|
(510 |
) |
Capital contribution from parent reorganization transaction |
|
— |
|
|
|
21,966 |
|
Payments for tax sharing agreement with related parties |
|
— |
|
|
|
(10,279 |
) |
Other |
|
(13 |
) |
|
|
(180 |
) |
Net cash (used in) provided by financing activities |
|
(996,742 |
) |
|
|
71,598 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
(621 |
) |
|
|
145 |
|
Net (decrease) increase in cash and cash equivalents |
|
(6,467 |
) |
|
|
270,591 |
|
Cash and cash equivalents, as of beginning of period |
|
602,232 |
|
|
|
331,641 |
|
Cash and cash equivalents, as of end of period |
$ |
595,765 |
|
|
$ |
602,232 |
|
Key Financial and Operating Data
We measure our business using both financial and operating data and use the following metrics and measures to assess the near-term and long-term performance of our overall business, including identifying trends, formulating financial projections, making strategic decisions, assessing operational efficiencies, and monitoring our business.
|
14 Weeks
|
|
13 Weeks
|
|
|
|
53 Weeks
|
|
52 Weeks
|
|
|
||||||||||
(in thousands, except net sales per active customer, per share data, and percentages) |
February 2,
|
|
January 28,
|
|
%
|
|
February 2,
|
|
January 28,
|
|
%
|
||||||||||
Financial and Operating Data |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net sales |
$ |
3,247,386 |
|
|
$ |
2,825,904 |
|
|
14.9 |
% |
|
$ |
11,861,335 |
|
|
$ |
11,147,720 |
|
|
6.4 |
% |
Net income (2) |
$ |
22,792 |
|
|
$ |
31,886 |
|
|
(28.5 |
)% |
|
$ |
392,738 |
|
|
$ |
39,580 |
|
|
n/m |
|
Net margin (2) |
|
0.7 |
% |
|
|
1.1 |
% |
|
|
|
|
3.3 |
% |
|
|
0.4 |
% |
|
|
||
Adjusted EBITDA (3) |
$ |
124,533 |
|
|
$ |
86,467 |
|
|
44.0 |
% |
|
$ |
570,537 |
|
|
$ |
368,068 |
|
|
55.0 |
% |
Adjusted EBITDA margin (3) |
|
3.8 |
% |
|
|
3.1 |
% |
|
|
|
|
4.8 |
% |
|
|
3.3 |
% |
|
|
||
Adjusted net income (3) |
$ |
120,009 |
|
|
$ |
80,278 |
|
|
49.5 |
% |
|
$ |
446,785 |
|
|
$ |
296,231 |
|
|
50.8 |
% |
Earnings per share, basic (2) |
$ |
0.06 |
|
|
$ |
0.07 |
|
|
(14.3 |
)% |
|
$ |
0.93 |
|
|
$ |
0.09 |
|
|
n/m |
|
Earnings per share, diluted (2) |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
(28.6 |
)% |
|
$ |
0.91 |
|
|
$ |
0.09 |
|
|
n/m |
|
Adjusted earnings per share, basic (3) |
$ |
0.29 |
|
|
$ |
0.19 |
|
|
52.6 |
% |
|
$ |
1.06 |
|
|
$ |
0.69 |
|
|
53.6 |
% |
Adjusted earnings per share, diluted (3) |
$ |
0.28 |
|
|
$ |
0.18 |
|
|
55.6 |
% |
|
$ |
1.04 |
|
|
$ |
0.69 |
|
|
50.7 |
% |
Net cash provided by operating activities |
$ |
207,516 |
|
|
$ |
99,547 |
|
|
108.5 |
% |
|
$ |
596,325 |
|
|
$ |
486,211 |
|
|
22.6 |
% |
Free cash flow (3) |
$ |
156,605 |
|
|
$ |
67,167 |
|
|
133.2 |
% |
|
$ |
452,494 |
|
|
$ |
342,929 |
|
|
31.9 |
% |
Active customers (4) |
|
20,514 |
|
|
|
20,083 |
|
|
2.1 |
% |
|
|
20,514 |
|
|
|
20,083 |
|
|
2.1 |
% |
Net sales per active customer (5) |
$ |
578 |
|
|
$ |
555 |
|
|
4.1 |
% |
|
$ |
578 |
|
|
$ |
555 |
|
|
4.1 |
% |
Autoship customer sales (6) |
$ |
2,617,343 |
|
|
$ |
2,158,959 |
|
|
21.2 |
% |
|
$ |
9,393,326 |
|
|
$ |
8,493,199 |
|
|
10.6 |
% |
Autoship customer sales as a percentage of net sales (6) |
|
80.6 |
% |
|
|
76.4 |
% |
|
|
|
|
79.2 |
% |
|
|
76.2 |
% |
|
|
||
n/m - not meaningful |
|
|
|
|
|
|
|
|
|
|
|
(1) |
Includes the impact of the 14th and 53rd week for Q4 and Fiscal Year 2024, respectively. |
(2) |
Includes share-based compensation expense, including related taxes, of |
(3) |
Adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted basic and diluted earnings per share, and free cash flow are non-GAAP financial measures. See “Non-GAAP Financial Measures” below. |
(4) |
We define active customers as the total number of individual customers who have ordered a product or service, and for whom a product has shipped or for whom a service has been provided, at least once during the preceding 364-day period. |
(5) |
We define net sales per active customer as the aggregate net sales for the preceding four fiscal quarters, divided by the total number of active customers at the end of that period. |
(6) |
We define Autoship customers as customers in a given fiscal quarter for whom an order has shipped through our Autoship subscription program during the preceding 364-day period. We define Autoship customer sales as a percentage of net sales as the Autoship customer sales in a given reporting period divided by the net sales from all orders in that period. |
We define net margin as net income divided by net sales and adjusted EBITDA margin as adjusted EBITDA divided by net sales.
Non-GAAP Financial Measures
Adjusted EBITDA and Adjusted EBITDA Margin
To provide investors with additional information regarding our financial results, we have disclosed in this earnings release adjusted EBITDA, a non-GAAP financial measure that we calculate as net income excluding depreciation and amortization; share-based compensation expense and related taxes; income tax provision (benefit); interest income (expense), net; transaction related costs; changes in the fair value of equity warrants; severance and exit costs; and litigation matters and other items that we do not consider representative of our underlying operations. We have provided a reconciliation below of adjusted EBITDA to net income, the most directly comparable GAAP financial measure.
We have included adjusted EBITDA and adjusted EBITDA margin in this earnings release because each is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted EBITDA and adjusted EBITDA margin facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable charges. Accordingly, we believe that adjusted EBITDA and adjusted EBITDA margin provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
We believe it is useful to exclude non-cash charges, such as depreciation and amortization and share-based compensation expense from our adjusted EBITDA because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude income tax provision (benefit); interest income (expense), net; transaction related costs; changes in the fair value of equity warrants; and litigation matters and other items which are not components of our core business operations. We believe it is useful to exclude severance and exit costs because these expenses represent temporary initiatives to realign resources and enhance operational efficiency, which are not components of our core business operations. Adjusted EBITDA has limitations as a financial measure and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:
- although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future and adjusted EBITDA does not reflect capital expenditure requirements for such replacements or for new capital expenditures;
- adjusted EBITDA does not reflect share-based compensation and related taxes. Share-based compensation has been, and will continue to be for the foreseeable future, a recurring expense in our business and an important part of our compensation strategy;
- adjusted EBITDA does not reflect interest income (expense), net; or changes in, or cash requirements for, our working capital;
- adjusted EBITDA does not reflect transaction related costs and other items which are either not representative of our underlying operations or are incremental costs that result from an actual or planned transaction or initiative and include changes in the fair value of equity warrants, severance and exit costs, litigation matters, integration consulting fees, internal salaries and wages (to the extent the individuals are assigned full-time to integration and transformation activities) and certain costs related to integrating and converging IT systems; and
- other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.
Because of these limitations, you should consider adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures, including various cash flow metrics, net income, net margin, and our other GAAP results.
The following table presents a reconciliation of net income to adjusted EBITDA, as well as the calculation of net margin and adjusted EBITDA margin, for each of the periods indicated:
(in thousands, except percentages) |
14 Weeks
|
|
13 Weeks
|
|
53 Weeks
|
|
52 Weeks
|
||||||||
Reconciliation of Net Income to Adjusted EBITDA |
February 2,
|
|
January 28,
|
|
February 2,
|
|
January 28,
|
||||||||
Net income |
$ |
22,792 |
|
|
$ |
31,886 |
|
|
$ |
392,738 |
|
|
$ |
39,580 |
|
Add (deduct): |
|
|
|
|
|
|
|
||||||||
Depreciation and amortization |
|
29,121 |
|
|
|
27,441 |
|
|
|
114,557 |
|
|
|
109,693 |
|
Share-based compensation expense and related taxes |
|
99,708 |
|
|
|
60,665 |
|
|
|
332,085 |
|
|
|
248,543 |
|
Interest income, net |
|
(3,723 |
) |
|
|
(31,384 |
) |
|
|
(35,068 |
) |
|
|
(58,501 |
) |
Change in fair value of unvested equity warrants |
|
(2,491 |
) |
|
|
(26,621 |
) |
|
|
(2,369 |
) |
|
|
(13,079 |
) |
Income tax (benefit) provision |
|
(25,489 |
) |
|
|
4,639 |
|
|
|
(241,045 |
) |
|
|
8,650 |
|
Severance costs |
|
— |
|
|
|
14,348 |
|
|
|
— |
|
|
|
14,348 |
|
Exit costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,839 |
|
Transaction related costs |
|
679 |
|
|
|
4,660 |
|
|
|
1,607 |
|
|
|
7,827 |
|
Other |
|
3,936 |
|
|
|
833 |
|
|
|
8,032 |
|
|
|
4,168 |
|
Adjusted EBITDA |
$ |
124,533 |
|
|
$ |
86,467 |
|
|
$ |
570,537 |
|
|
$ |
368,068 |
|
Net sales |
$ |
3,247,386 |
|
|
$ |
2,825,904 |
|
|
$ |
11,861,335 |
|
|
$ |
11,147,720 |
|
Net margin |
|
0.7 |
% |
|
|
1.1 |
% |
|
|
3.3 |
% |
|
|
0.4 |
% |
Adjusted EBITDA margin |
|
3.8 |
% |
|
|
3.1 |
% |
|
|
4.8 |
% |
|
|
3.3 |
% |
Adjusted Net Income and Adjusted Basic and Diluted Earnings per Share
To provide investors with additional information regarding our financial results, we have disclosed in this earnings release adjusted net income and adjusted basic and diluted earnings per share, which represent non-GAAP financial measures. We calculate adjusted net income as net income excluding share-based compensation expense and related taxes, releases of valuation allowances associated with deferred tax assets, changes in the fair value of equity warrants, and severance and exit costs. We calculate adjusted basic and diluted earnings per share by dividing adjusted net income attributable to common stockholders by the weighted-average shares outstanding during the period. We have provided a reconciliation below of adjusted net income to net income, the most directly comparable GAAP financial measure.
We have included adjusted net income and adjusted basic and diluted earnings per share in this earnings release because each is a key measure used by our management and board of directors to evaluate our operating performance, generate future operating plans and make strategic decisions regarding the allocation of capital. In particular, the exclusion of certain expenses in calculating adjusted net income and adjusted basic and diluted earnings per share facilitates operating performance comparability across reporting periods by removing the effect of non-cash expenses and certain variable gains and losses that do not represent a component of our core business operations. We believe it is useful to exclude non-cash share-based compensation expense because the amount of such expenses in any specific period may not directly correlate to the underlying performance of our business operations. We believe it is useful to exclude releases of valuation allowances associated with deferred tax assets as this is not a component of our core business operations. We believe it is useful to exclude changes in the fair value of equity warrants because the variability of equity warrant gains and losses is not representative of our underlying operations. We believe it is useful to exclude severance and exit costs because these expenses represent temporary initiatives to realign resources and enhance operational efficiency, which are not components of our core business operations. Accordingly, we believe that these measures provide useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Adjusted net income and adjusted basic and diluted earnings per share have limitations as financial measures and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Other companies may calculate adjusted net income and adjusted basic and diluted earnings per share differently, which reduces their usefulness as comparative measures. Because of these limitations, you should consider adjusted net income and adjusted basic and diluted earnings alongside other financial performance measures, including various cash flow metrics, net income, basic and diluted earnings per share, and our other GAAP results.
The following table presents a reconciliation of net income to adjusted net income, as well as the calculation of adjusted basic and diluted earnings per share, for each of the periods indicated:
(in thousands, except per share data) |
14 Weeks
|
|
13 Weeks
|
|
53 Weeks
|
|
52 Weeks
|
||||||||
Reconciliation of Net Income to Adjusted Net Income |
February 2,
|
|
January 28,
|
|
February 2,
|
|
January 28,
|
||||||||
Net income |
$ |
22,792 |
|
|
$ |
31,886 |
|
|
$ |
392,738 |
|
|
$ |
39,580 |
|
Add (deduct): |
|
|
|
|
|
|
|
||||||||
Share-based compensation expense and related taxes |
|
99,708 |
|
|
|
60,665 |
|
|
|
332,085 |
|
|
|
248,543 |
|
Change in fair value of unvested equity warrants |
|
(2,491 |
) |
|
|
(26,621 |
) |
|
|
(2,369 |
) |
|
|
(13,079 |
) |
Deferred tax asset valuation allowance release |
|
— |
|
|
|
— |
|
|
|
(275,669 |
) |
|
|
— |
|
Severance costs |
|
— |
|
|
|
14,348 |
|
|
|
— |
|
|
|
14,348 |
|
Exit costs |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
6,839 |
|
Adjusted net income |
$ |
120,009 |
|
|
$ |
80,278 |
|
|
$ |
446,785 |
|
|
$ |
296,231 |
|
Weighted-average common shares used in computing adjusted earnings per share: |
|
|
|
|
|
|
|
||||||||
Basic |
|
407,834 |
|
|
|
431,600 |
|
|
|
421,351 |
|
|
|
429,457 |
|
Effect of dilutive share-based awards |
|
16,291 |
|
|
|
2,342 |
|
|
|
9,639 |
|
|
|
2,583 |
|
Diluted |
|
424,125 |
|
|
|
433,942 |
|
|
|
430,990 |
|
|
|
432,040 |
|
Earnings per share attributable to common Class A and Class B stockholders |
|
|
|
|
|
|
|
||||||||
Basic |
$ |
0.06 |
|
|
$ |
0.07 |
|
|
$ |
0.93 |
|
|
$ |
0.09 |
|
Diluted |
$ |
0.05 |
|
|
$ |
0.07 |
|
|
$ |
0.91 |
|
|
$ |
0.09 |
|
Adjusted basic |
$ |
0.29 |
|
|
$ |
0.19 |
|
|
$ |
1.06 |
|
|
$ |
0.69 |
|
Adjusted diluted |
$ |
0.28 |
|
|
$ |
0.18 |
|
|
$ |
1.04 |
|
|
$ |
0.69 |
|
Free Cash Flow
To provide investors with additional information regarding our financial results, we have disclosed in this earnings release free cash flow, a non-GAAP financial measure that we calculate as net cash provided by operating activities less capital expenditures (which consist of purchases of property and equipment, capitalization of labor related to our websites, mobile applications, software development, and leasehold improvements). We have provided a reconciliation below of free cash flow to net cash provided by operating activities, the most directly comparable GAAP financial measure.
We have included free cash flow in this earnings release because it is used by our management and board of directors as an important indicator of our liquidity as it measures the amount of cash we generate. Accordingly, we believe that free cash flow provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors.
Free cash flow has limitations as a financial measure and you should not consider it in isolation or as a substitute for analysis of our results as reported under GAAP. There are limitations to using non-GAAP financial measures, including that other companies, including companies in our industry, may calculate free cash flow differently. Because of these limitations, you should consider free cash flow alongside other financial performance measures, including net cash provided by operating activities, capital expenditures and our other GAAP results.
The following table presents a reconciliation of net cash provided by operating activities to free cash flow for each of the periods indicated:
(in thousands) |
14 Weeks
|
|
13 Weeks
|
|
53 Weeks
|
|
52 Weeks
|
||||||||
Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow |
February 2,
|
|
January 28,
|
|
February 2,
|
|
January 28,
|
||||||||
Net cash provided by operating activities |
$ |
207,516 |
|
|
$ |
99,547 |
|
|
$ |
596,325 |
|
|
$ |
486,211 |
|
Deduct: |
|
|
|
|
|
|
|
||||||||
Capital expenditures |
|
(50,911 |
) |
|
|
(32,380 |
) |
|
|
(143,831 |
) |
|
|
(143,282 |
) |
Free Cash Flow |
$ |
156,605 |
|
|
$ |
67,167 |
|
|
$ |
452,494 |
|
|
$ |
342,929 |
|
Free cash flow may be affected in the near to medium term by the timing of capital investments (such as the launch of new fulfillment centers, pharmacy facilities, veterinary clinics, customer service infrastructure, and corporate offices and purchases of IT and other equipment), fluctuations in our growth and the effect of such fluctuations on working capital, and changes in our cash conversion cycle due to increases or decreases of vendor payment terms as well as inventory turnover.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250326617117/en/
Investor Contact:
ir@chewy.com
Media Contact:
Diane Pelkey
dpelkey@chewy.com
Source: Chewy