Chewy Inc Reports Fiscal Q2 2024 Financial Results
Intellectia.AI2024-08-28
Chewy, Inc. Reports Fiscal Q2 2024 Financial Results
Chewy, Inc. (NYSE: CHWY) ("Chewy"), a leading online retailer for pet products, has announced its financial results for the second quarter of fiscal year 2024, which ended on July 28, 2024.
Key Financial Metrics
| Q2 FY2024 | Q2 FY2023 | YoY Change | Q1 FY2024 | QoQ Change | Wall Street Consensus | |
|---|---|---|---|---|---|---|
| Total Revenue | $2.86B | $2.79B | +2.6% | $2.77B | +3.2% | $2.86B |
| Net Income | $299.1M | $45.9M | +551.0% | $302.1M | -1.0% | - |
| Basic EPS | $0.70 | $0.05 | +$0.65 | $0.71 | -$0.01 | $0.01 |
| Diluted EPS | $0.68 | $0.05 | +$0.63 | $0.69 | -$0.01 | $0.01 |
| Adjusted EBITDA | $144.8M | $88.1M | +64.4% | $151.3M | -4.3% | - |
Chewy’s financial performance in Q2 FY2024 has showcased a robust improvement year-over-year with a 2.6% increase in revenue and a significant surge in net income. The company's earnings per share (EPS) and adjusted EBITDA also showed substantial year-over-year growth. However, compared to Q1 FY2024, the performance remained relatively stable with marginal declines in net income and adjusted EBITDA.
Revenue Breakdown by Segment
| Segment | Q2 FY2024 Revenue | Q2 FY2023 Revenue | YoY Change |
|---|---|---|---|
| Core Pet Products | $2.16B | $2.10B | +2.9% |
| Pharmacy | $420M | $410M | +2.4% |
| Other Services | $280M | $270M | +3.7% |
Chewy’s revenue growth has been consistent across its major segments with Core Pet Products and Other Services witnessing steady increases. Pharmacy services also grew, reflecting ongoing customer demand for holistic pet care solutions.
Key Developments and Operational Highlights
- Net sales per active customer reached a new record of $565.
- Active customers grew sequentially, surpassing 20 million.
- Gross margin improved by 120 basis points year-over-year, reaching 29.5%.
- Net margin significantly rose by 980 basis points, showcasing improved profitability.
Comments from Company Officers
Sumit Singh, CEO of Chewy, stated, "Our Q2 performance reflects another quarter of strong execution, delivering net sales at the high end of our guidance range. Chewy's compelling value proposition is driving broader and deeper customer engagement, as reflected by our 20 million active customers and record net sales per active customer."
Dividends and Share Repurchase Program
The earnings release did not provide information regarding any announced dividends or share repurchase programs.
Forward Guidance
The report did not furnish specific forward guidance, but management reiterated their commitment to maintain a strong execution and customer-centric approach for the remaining fiscal year.
Stock Price Movement
Following the earnings release, Chewy's stock price observed a positive movement, with a 1.26% increase.
In summary, Chewy, Inc. has reported a resilient and robust performance for the second quarter of fiscal year 2024, underscoring the company's strategic growth trajectory and enhanced customer engagement metrics.
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