```markdown [Executive Summary & Business Overview](index=1&type=section&id=Executive%20Summary%20%26%20Business%20Overview) [Q2 FY2025 Financial Highlights](index=1&type=section&id=Q2%20FY2025%20Financial%20Highlights) Chewy reported strong Q2 FY2025 results, with net sales exceeding guidance and significant growth in Autoship customer sales and active customers. The company also saw improvements in gross margin and adjusted EBITDA margin Key Operating Metrics | Metric | Q2 FY2025 (13 Weeks) | Q2 FY2024 (13 Weeks) | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Net Sales | $3.10 billion | $2.86 billion | +8.6% | | Autoship Customer Net Sales | $2.58 billion | $2.24 billion | +14.9% | | Autoship % of Total Net Sales | 83.0% | 78.4% | +4.6 pp | | Active Customers | 20.91 million | 20.00 million | +4.5% | | Net Sales Per Active Customer (NSPAC) | $591 | $565 | +4.6% | GAAP Profitability Metrics | Metric | Q2 FY2025 (13 Weeks) | Q2 FY2024 (13 Weeks) | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Gross Margin | 30.4% | 29.5% | +90 bps | | Net Income | $62.0 million | $299.1 million | -79.3% | | Net Margin | 2.0% | 10.5% | -850 bps | | Basic EPS | $0.15 | $0.70 | -78.6% | | Diluted EPS | $0.14 | $0.68 | -79.4% | Adjusted Profitability Metrics | Metric | Q2 FY2025 (13 Weeks) | Q2 FY2024 (13 Weeks) | YoY Change | | :-------------------------------- | :------------------- | :------------------- | :--------- | | Adjusted EBITDA | $183.3 million | $144.9 million | +26.5% | | Adjusted EBITDA Margin | 5.9% | 5.1% | +80 bps | | Adjusted Net Income | $141.1 million | $104.7 million | +34.8% | | Adjusted Basic EPS | $0.34 | $0.24 | +41.7% | | Adjusted Diluted EPS | $0.33 | $0.24 | +37.5% | [About Chewy](index=1&type=section&id=About%20Chewy) Chewy's mission is to be the most trusted and convenient destination for pet parents, offering a broad selection of high-quality products and services, including prescriptions, from numerous brands and private labels, delivered with exceptional customer care - Mission: To be the most trusted and convenient destination for pet parents and partners everywhere[5](index=5&type=chunk) - Offerings: Approximately **130,000 products and services** from around **3,200 brands**, including private brands, available through websites and mobile applications[5](index=5&type=chunk) [Forward-Looking Statements & Risks](index=2&type=section&id=Forward-Looking%20Statements%20%26%20Risks) [Forward-Looking Statements Disclaimer](index=2&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section contains a standard disclaimer regarding forward-looking statements, indicating that actual results may differ materially due to substantial risks and uncertainties. Investors are cautioned not to place undue reliance on these statements, which are based on current assumptions and projections - Forward-looking statements are not guarantees of performance or results, and actual outcomes could differ materially due to various factors[10](index=10&type=chunk) - Key risk factors include the ability to sustain growth, manage macroeconomic environments, acquire and retain customers, manage supply chain disruptions, maintain technology infrastructure, ensure cybersecurity, and comply with regulations[9](index=9&type=chunk) [Financial Statements](index=3&type=section&id=Financial%20Statements) [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) The balance sheet provides a snapshot of Chewy's financial position, showing an increase in total assets and stockholders' equity, while total liabilities slightly decreased as of August 3, 2025, compared to February 2, 2025 Summary Balance Sheet | Metric (in millions) | As of August 3, 2025 | As of February 2, 2025 | | :------------------- | :------------------- | :--------------------- | | Total Assets | $3,118.8 | $3,014.5 | | Total Liabilities | $2,728.9 | $2,753.0 | | Total Stockholders' Equity | $389.9 | $261.5 | Current Assets | Current Assets (in millions) | As of August 3, 2025 | As of February 2, 2025 | | :--------------------------- | :------------------- | :--------------------- | | Cash and cash equivalents | $591.8 | $595.8 | | Accounts receivable | $221.2 | $169.0 | | Inventories | $874.6 | $836.7 | | Prepaid expenses and other current assets | $94.3 | $60.9 | | Total current assets | $1,781.9 | $1,662.4 | Current Liabilities | Current Liabilities (in millions) | As of August 3, 2025 | As of February 2, 2025 | | :-------------------------------- | :------------------- | :--------------------- | | Trade accounts payable | $1,226.0 | $1,175.9 | | Accrued expenses and other current liabilities | $967.2 | $1,030.8 | | Total current liabilities | $2,193.2 | $2,206.7 | [Condensed Consolidated Statements of Operations and Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income) Chewy's statements of operations show continued net sales growth for both the 13 and 26-week periods ended August 3, 2025. While gross profit increased, net income significantly decreased year-over-year, primarily due to a large deferred tax benefit in the prior year 13 Weeks Ended Statements of Operations | Metric (in millions) | 13 Weeks Ended Aug 3, 2025 | 13 Weeks Ended Jul 28, 2024 | YoY Change | | :------------------- | :------------------------- | :------------------------- | :--------- | | Net sales | $3,104.2 | $2,858.6 | +8.6% | | Cost of goods sold | $2,162.0 | $2,014.8 | +7.3% | | Gross profit | $942.2 | $843.8 | +11.7% | | Income from operations | $69.7 | $32.1 | +117.1% | | Net income | $62.0 | $299.1 | -79.3% | | Basic EPS | $0.15 | $0.70 | -78.6% | | Diluted EPS | $0.14 | $0.68 | -79.4% | 26 Weeks Ended Statements of Operations | Metric (in millions) | 26 Weeks Ended Aug 3, 2025 | 26 Weeks Ended Jul 28, 2024 | YoY Change | | :------------------- | :------------------------- | :------------------------- | :--------- | | Net sales | $6,220.2 | $5,736.3 | +8.4% | | Cost of goods sold | $4,354.2 | $4,038.5 | +7.8% | | Gross profit | $1,866.0 | $1,697.8 | +9.9% | | Income from operations | $146.6 | $96.7 | +51.6% | | Net income | $124.4 | $366.0 | -66.0% | | Basic EPS | $0.30 | $0.85 | -64.7% | | Diluted EPS | $0.29 | $0.84 | -65.5% | - The significant year-over-year decrease in net income and EPS is primarily due to a **$275.7 million tax benefit** from the release of a valuation allowance on deferred tax assets in the prior year (Q2 FY2024)[7](index=7&type=chunk)[14](index=14&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=5&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the 26 weeks ended August 3, 2025, Chewy generated increased cash from operating activities, while cash used in investing activities decreased significantly compared to the prior year, which included proceeds from marketable securities. Cash used in financing activities also decreased due to lower common stock repurchases Summary Cash Flow Activities | Cash Flow Activity (in millions) | 26 Weeks Ended Aug 3, 2025 | 26 Weeks Ended Jul 28, 2024 | | :------------------------------- | :------------------------- | :------------------------- | | Net cash provided by operating activities | $220.3 | $205.3 | | Net cash (used in) provided by investing activities | $(70.9) | $477.2 | | Net cash used in financing activities | $(154.0) | $(590.0) | | Net (decrease) increase in cash and cash equivalents | $(4.0) | $92.3 | | Cash and cash equivalents, end of period | $591.8 | $694.5 | - Investing activities in the prior year included **$538.4 million from maturities of marketable securities**, which was not present in the current period[16](index=16&type=chunk) - Repurchases of common stock decreased to **$152.6 million** in the current period from **$532.0 million** in the prior year, contributing to lower cash used in financing activities[16](index=16&type=chunk) [Non-GAAP Financial Measures](index=6&type=section&id=Non-GAAP%20Financial%20Measures) [Definition and Rationale](index=6&type=section&id=Definition%20and%20Rationale) Chewy utilizes several non-GAAP financial measures, including Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net income, Adjusted basic/diluted EPS, and Free cash flow, to provide additional insights into its operating performance, liquidity, and capital allocation decisions, as these metrics are key for management evaluation - Non-GAAP metrics are used by management and the board of directors to evaluate operating performance, generate future operating plans, assess liquidity, and make strategic capital allocation decisions[17](index=17&type=chunk) - Adjustments typically exclude non-cash items (depreciation, amortization, share-based compensation), non-operating items (interest, income tax), and non-recurring items (transaction costs, severance, fair value changes of equity warrants, deferred tax asset valuation allowance releases)[18](index=18&type=chunk)[20](index=20&type=chunk) [Limitations of Non-GAAP Measures](index=6&type=section&id=Limitations%20of%20Non-GAAP%20Measures) Chewy acknowledges that its non-GAAP financial measures have limitations and should not be considered in isolation or as substitutes for GAAP results. These measures may not fully reflect capital expenditure needs, working capital changes, or recurring share-based compensation, and their comparability across companies may vary - Non-GAAP measures do not reflect capital expenditure requirements for asset replacement, interest income/expense, or changes in working capital[21](index=21&type=chunk) - Adjusted EBITDA and adjusted net income exclude share-based compensation, which is a recurring and important part of the company's compensation strategy[21](index=21&type=chunk) - Other companies may calculate these non-GAAP measures differently, reducing their usefulness for comparative analysis[19](index=19&type=chunk) [Key Financial and Operating Data & Reconciliations](index=7&type=section&id=Key%20Financial%20and%20Operating%20Data%20%26%20Reconciliations) [Financial and Operating Metrics](index=7&type=section&id=Financial%20and%20Operating%20Metrics) This section presents a comprehensive table of key financial and operating metrics, including both GAAP and non-GAAP measures, along with operational indicators like active customers and Autoship sales, for the 13 and 26-week periods, highlighting year-over-year changes Key Financial and Operating Data | Metric (in millions, except percentages) | 13 Weeks Ended Aug 3, 2025 | 13 Weeks Ended Jul 28, 2024 | % Change | | :--------------------------------------- | :------------------------- | :------------------------- | :------- | | Net sales | $3,104.2 | $2,858.6 | 8.6% | | Net income | $62.0 | $299.1 | (79.3)% | | Net margin | 2.0% | 10.5% | | | Adjusted EBITDA | $183.3 | $144.9 | 26.5% | | Adjusted EBITDA margin | 5.9% | 5.1% | | | Adjusted net income | $141.1 | $104.7 | 34.8% | | Basic EPS | $0.15 | $0.70 | (78.6)% | | Diluted EPS | $0.14 | $0.68 | (79.4)% | | Adjusted basic EPS | $0.34 | $0.24 | 41.7% | | Adjusted diluted EPS | $0.33 | $0.24 | 37.5% | | Net cash provided by operating activities | $133.9 | $123.4 | 8.5% | | Free cash flow | $105.9 | $91.5 | 15.7% | | Active customers (in thousands) | 20,906 | 20,002 | 4.5% | | Net sales per active customer | $591 | $565 | 4.6% | | Autoship customer sales | $2,576.9 | $2,242.2 | 14.9% | | Autoship customer sales as a percentage of net sales | 83.0% | 78.4% | | [Reconciliation of Non-GAAP Measures](index=7&type=section&id=Reconciliation%20of%20Non-GAAP%20Measures) This section provides detailed reconciliations of GAAP net income and net cash provided by operating activities to their respective non-GAAP counterparts: Adjusted EBITDA, Adjusted Net Income, and Free Cash Flow, for both the 13 and 26-week periods [Adjusted EBITDA Reconciliation](index=7&type=section&id=Adjusted%20EBITDA%20Reconciliation) Adjusted EBITDA Reconciliation (13 Weeks) | (in millions, except percentages) | 13 Weeks Ended Aug 3, 2025 | 13 Weeks Ended Jul 28, 2024 | | :-------------------------------- | :------------------------- | :------------------------- | | Net income | $62.0 | $299.1 | | Add (deduct): | | | | Depreciation and amortization | $32.1 | $28.5 | | Share-based compensation expense and related taxes | $79.1 | $82.5 | | Interest income, net | $(3.9) | $(12.9) | | Change in fair value of equity warrants | — | $(1.2) | | Income tax provision (benefit) | $12.0 | $(252.6) | | Severance costs | — | — | | Transaction related costs | $0.6 | $0.5 | | Other | $1.4 | $1.0 | | **Adjusted EBITDA** | **$183.3** | **$144.9** | | Net sales | $3,104.2 | $2,858.6 | | Net margin | 2.0% | 10.5% | | Adjusted EBITDA margin | 5.9% | 5.1% | [Adjusted Net Income and EPS Reconciliation](index=8&type=section&id=Adjusted%20Net%20Income%20and%20EPS%20Reconciliation) Adjusted Net Income and EPS Reconciliation (13 Weeks) | (in millions, except per share data) | 13 Weeks Ended Aug 3, 2025 | 13 Weeks Ended Jul 28, 2024 | | :----------------------------------- | :------------------------- | :------------------------- | | Net income | $62.0 | $299.1 | | Add (deduct): | | | | Share-based compensation expense and related taxes | $79.1 | $82.5 | | Change in fair value of unvested equity warrants | — | $(1.2) | | Deferred tax asset valuation allowance release | — | $(275.7) | | Severance costs | — | — | | **Adjusted net income** | **$141.1** | **$104.7** | | Basic EPS | $0.15 | $0.70 | | Diluted EPS | $0.14 | $0.68 | | Adjusted basic EPS | $0.34 | $0.24 | | Adjusted diluted EPS | $0.33 | $0.24 | Weighted-Average Common Shares (13 Weeks) | Weighted-average common shares | 13 Weeks Ended Aug 3, 2025 | 13 Weeks Ended Jul 28, 2024 | | :----------------------------- | :------------------------- | :------------------------- | | Basic | 414.2 | 429.4 | | Dilutive share-based awards | 14.2 | 8.5 | | Diluted | 428.4 | 437.9 | [Free Cash Flow Reconciliation](index=8&type=section&id=Free%20Cash%20Flow%20Reconciliation) Free Cash Flow Reconciliation (13 Weeks) | (in millions) | 13 Weeks Ended Aug 3, 2025 | 13 Weeks Ended Jul 28, 2024 | | :------------ | :------------------------- | :------------------------- | | Net cash provided by operating activities | $133.9 | $123.4 | | Deduct: Capital expenditures | $(28.0) | $(31.9) | | **Free Cash Flow** | **$105.9** | **$91.5** | - Free cash flow can be influenced by the timing of capital investments (e.g., new fulfillment centers, veterinary clinics), growth fluctuations affecting working capital, and changes in the cash conversion cycle[26](index=26&type=chunk) [Investor Relations](index=8&type=section&id=Investor%20Relations) [Contact Information](index=8&type=section&id=Contact%20Information) This section provides contact details for investor and media inquiries - Investor Contact: **ir@chewy.com**[27](index=27&type=chunk) - Media Contact: **Diane Pelkey, dpelkey@chewy.com**[27](index=27&type=chunk) ```

Group 1 - Chewy Inc. is expected to report quarterly earnings of 14 cents per share on revenue of $3.08 billion, with shares gaining 3.8% to $43.70 in after-hours trading [2] - Rubrik Inc. reported second-quarter results that exceeded expectations and raised its full-year fiscal 2026 revenue outlook to a range of $1.227 billion to $1.237 billion, up from a previous range of $1.179 billion to $1.189 billion, while shares fell 3.6% to $94.91 [2] - Daktronics Inc. is anticipated to post quarterly earnings of 25 cents per share on revenue of $213.41 million, with shares gaining 0.6% to $17.53 in after-hours trading [2] - Synopsys Inc. reported weaker-than-expected third-quarter results and lowered its fiscal 2025 adjusted EPS guidance from a range of $15.11 to $15.19 to a new range of $12.76 to $12.80, leading to a 19.3% dip in shares to $487.99 [2] - Oxford Industries Inc. is expected to report quarterly earnings of $1.18 per share on revenue of $410.85 million, with shares rising 0.3% to $40.88 in after-hours trading [2]

Core Viewpoint - Chewy Inc is expected to report strong second-quarter earnings, with analysts focusing on growth in recurring revenue and subscription services, particularly through its Autoship program [1][5]. Earnings Estimates - Analysts predict Chewy will report Q2 revenue of $3.08 billion, an increase from $2.86 billion [1]. - Expected earnings per share (EPS) for Q2 is 14 cents, down from 24 cents a year ago, but the company has consistently beaten EPS estimates for over 10 quarters [2]. Analyst Insights - JPMorgan analyst Doug Anmuth considers Chewy a defensive stock, with 85% of net sales coming from non-discretionary goods [3]. - Approximately 80% of Chewy's revenue is derived from Autoship, which is a significant strength for the company [3]. - Anmuth maintains an Overweight rating with a price target of $47, citing stable industry trends and product improvements [4]. Customer Growth and Market Position - Chewy is expected to add 126,000 net new customers in Q2 and 656,000 for the fiscal year [5]. - The online pet category is still growing, with Chewy holding about 33% market share and 38% of sales being online in fiscal 2024 [4]. Key Performance Indicators - Autoship sales increased by 14.8% year-over-year in Q1 to $2.56 billion [6]. - Net sales per active customer rose by 3.7% year-over-year to $583 in Q1 [6]. - Chewy's initial guidance for fiscal 2025 sales is between $12.30 billion and $12.45 billion [7]. Stock Performance - Chewy shares were trading at $41.59, with a year-to-date increase of 22.8% in 2025 [7].

Welcome back. Airbus saying it's confident it can increase deliveries in the second half of the year with a strengthened supply chain. The US and the EU coming to some terms on tariff exemptions for aerospace.Joining us this morning, Phil Leau, along with the CEO of Airbus. Hey Phil. Hey Carl.Yay, CEO of Airbus. Thank you for joining us today. Carl sent us up there talking about your expectations to deliver around 820 aircraft this year.you've got to really hit the gas in the second really the remainder of ...

The consensus price target for Chewy, Inc. (NYSE:CHWY) remains stable at $50, indicating steady confidence from analysts.Over the past year, the average price target for Chewy has increased from $41.33 to $50, reflecting growing optimism about the company's performance.Analyst Stephanie Wissink from Jefferies has set a higher price target of $60, suggesting a more bullish outlook on Chewy's financial future.Chewy, Inc. (NYSE:CHWY) is a leading e-commerce company in the United States, specializing in pet-rel ...

Chewy, Inc. CHWY will release earnings results for the second quarter before the opening bell on Wednesday, Sept. 10.Analysts expect the Plantation, Florida-based company to report quarterly earnings at 33 cents per share, up from 24 cents per share in the year-ago period. Chewy projects to report quarterly revenue of $3.08 billion, compared to $2.86 billion a year earlier, according to data from Benzinga Pro.On June 23, Chewy priced upsized 23.95 million share offering by BC Partners Affiliate at $41.95, w ...

Company Overview - Chewy has expanded its offerings from basic pet supplies to include veterinary and pet pharmaceutical care, with clinics located in South Florida, Atlanta, Denver, and Texas [1] - The company provides a wide range of products and services for various pets, including livestock, through its organized online retail site [2] - Chewy was founded in 2011, went public in 2019, and currently has a market cap of approximately $17.6 billion [3] Financial Performance - In fiscal 1Q25, Chewy reported revenue of $3.12 billion, an increase of 8.3% year-over-year, exceeding forecasts by over $40 million [7] - The non-GAAP EPS for the same quarter was 35 cents, up 4 cents from the previous year, and also beat expectations by one penny [7] - Chewy had approximately 20.5 million active customers at the end of fiscal 2024 [6] Analyst Insights - Morgan Stanley's Nathan Feather anticipates a high likelihood of revenue guidance increase for FY25, citing improving web traffic and potential for pet household formation [8] - The stock is rated as Overweight (Buy) with a price target of $50, indicating an 18% upside potential [8] - Chewy has a Strong Buy consensus rating based on 22 recent analyst reviews, with 17 Buys and 5 Holds, and a current stock price of $42.33 [9] Market Context - The overall market outlook is positive, with major indexes near record highs, and the S&P 500 and NASDAQ showing year-to-date increases of 10% and 12.5%, respectively [5] - The potential for Federal Reserve rate cuts is seen as a catalyst for market resilience, which could benefit equities [4]

Retail investors are gearing up for another week of financial reports. Here's a look at the most notable stocks set to report company earnings this week. PL stock is soaring after earnings. See the chart here. Monday, Sept. 8 Before Market Open: Planet Labs PBC PL kicked off the week by beating analyst estimates on the top and bottom lines. Shares soared more than 35% following the print. After Market Close: Caseys General Stores, Inc. CASY will report its Q1 results after Monday's closing bell and host its ...

[Music] Welcome back to Trade 360. I'm Diane King Hall. Time now for the big three.Three stocks, three charts, and three trades. Rick Dukat will take us through the charts. And here to take us through the trades is Scott Bower, CEO of Prosper Trading Academy.It is good to see both of you. All right, Scott, I want to get your big picture take on the market this week, especially as we gear up for inflation and look at inflation. What's your expectation for this week.Okay. >> Boy, the market has been so resili ...

Core Viewpoint - Chewy has demonstrated strong earnings growth and stock performance, outperforming the S&P 500, making it a potential investment opportunity [2][14]. Company Overview - Chewy is an online retailer specializing in pet supplies and veterinary care, offering a wide range of products including treats, toys, food, and prescription drugs [4]. - The company has expanded its revenue streams by opening veterinary clinics, which also helps introduce its e-commerce platform to new customers [4]. Financial Performance - In the first quarter of fiscal 2025, Chewy reported an 8% increase in sales to $3.1 billion, exceeding its guidance [6]. - The company achieved over $192 million in adjusted EBITDA, which is $29.8 million higher than the previous year [6]. - Chewy maintains a strong financial position with $616 million in cash and no debt [5]. Customer Engagement - Chewy's AutoShip service, which allows customers to set up automatic reorders, accounts for 82% of its net sales, indicating strong customer loyalty [8]. - The introduction of sponsored ads in 2023 has contributed significantly to gross margin gains, enhancing revenue growth [9]. Growth Strategy - Chewy aims to increase its adjusted EBITDA margin from 6.2% to a long-term goal of 10% through initiatives like AutoShip and sponsored ads [9]. - The company is actively repurchasing shares, using approximately $23 million of its free cash flow for this purpose [7]. Stock Valuation - Chewy's stock is currently trading at 32 times forward earnings estimates, which is higher than earlier in the year [10]. - Despite the increased valuation, the long-term prospects for Chewy remain positive, suggesting that the stock may still be a reasonable investment [12].