Financial Data and Key Metrics - Q1 net sales increased by 3% to $2.88 billion, exceeding the high end of guidance [33] - Autoship customer sales reached $2.2 billion, representing 77.6% of net sales, up 6.4% YoY [33] - Gross margin for the quarter was 29.7%, a 130 basis point increase YoY and 150 basis points sequentially [57] - Adjusted EBITDA margin was 5.7%, representing 170 basis points of margin expansion YoY and 260 basis points sequentially [58] - Free cash flow for the quarter was $52.6 million, with $1.1 billion in cash and cash equivalents, and a strong liquidity position of $1.9 billion [26] Business Line Data and Key Metrics - Chewy Health saw strong performance, with net sales penetration expanding in healthcare and premium consumables [40] - Sponsored ads business contributed significantly to gross margin improvement, with plans to scale to 1% to 3% of net sales [37][89] - Chewy Plus, a new paid membership program, was launched in beta, offering benefits like free shipping and cash rewards [20] Market Data and Key Metrics - Expansion into Canada is progressing as planned, with high customer NPS and growing demand for premium consumables [22] - The company opened three additional Chewy Vet Care clinics, bringing the total to four, with plans to open more in 2024 [36] Company Strategy and Industry Competition - The company remains focused on strategic initiatives like Chewy Plus and Chewy Health, aiming to drive long-term growth and margin expansion [20][36] - The pet industry is showing signs of normalization, with positive trends in pet household formation and adoption rates [55][98] - The company is leveraging its Autoship program and personalized customer care to maintain a competitive edge [22] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the company's ability to execute its strategic roadmap and deliver compelling results, despite a challenging macro environment [28] - The company is cautiously optimistic about the pet industry's normalization, with early signs of green shoots in demand trends [27][55] - Management highlighted the importance of disciplined cost management and operational efficiency in driving profitability [25] Other Important Information - The company announced its first-ever share repurchase program of up to $500 million, reflecting confidence in its financial position and long-term strategy [42] - Full-year 2024 guidance for net sales is maintained at $11.6 billion to $11.8 billion, with adjusted EBITDA margin guidance raised to 4.1% to 4.3% [60][43] Q&A Session Summary Question: How does the company plan to grow revenue without increasing customer count? - The company is focusing on increasing wallet share through programs like Autoship and expanding into new categories like Chewy Health [24] Question: What are the key metrics for measuring the success of Chewy Vet Care clinics? - Success will be measured by customer satisfaction scores, vet retention and recruitment, and operational execution [63][64] Question: How will the share repurchase program be executed? - The company plans to enter the market both opportunistically and consistently, with the goal of mitigating dilution from share-based compensation [46][67] Question: What are the expectations for hard goods category performance? - The company has seen some improvement in the hard goods category, with declines slowing, but challenges are expected to continue in the near term [48][69] Question: What is driving the gross margin improvement? - Gross margin improvement is driven by product mix, sponsored ads, and healthcare, with continued focus on premiumizing the business [50][79] Question: How does Chewy Plus interact with Autoship? - Chewy Plus and Autoship are seen as complementary programs, with Chewy Plus offering additional benefits to Autoship customers [90] Question: What are the marketing priorities for the company? - The company is focused on full-funnel marketing efforts, with a balance between new customer acquisition and retention, while maintaining flexibility in spend [91][95] Question: What are the expectations for customer count trends? - The company expects active customer counts to be flat to slightly down in the first half of 2024, with potential recovery in the second half [86][98] Question: What is driving the optimism around Chewy Vet Care clinics? - Early signs of success in demand generation, vet retention, and operational execution are driving optimism for the clinics [99][119] Question: How is the company managing churn and reactivation? - The company has seen improved churn rates YoY, with reactivations up mid-teens, but continues to focus on reducing churn in newer cohorts [117][131]

Chewy (CHWY) came out with quarterly earnings of $0.31 per share, beating the Zacks Consensus Estimate of $0.21 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non- recurring items. Chewy, which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $2.88 billion for the quarter ended April 2024, surpassing the Zacks Consensus Estimate by 1.05%. This compares to year-ago revenues of $2.78 billion. The company has topped consensus reve ...

The shares of Chewy Inc (NYSE:CHWY) are 14.3% higher premarket, after the online pet supply retailer unveiled a better-than-expected quarterly report. The company's first-quarter results featured adjusted earnings of 15 cents per share on revenue of $2.88 billion, both of which topped Wall Street's estimates. In addition, Chewy announced a share buyback plan of up to $500 million. A short squeeze could catch bearish bettors off guard. Short interest fell 3% in the most recent reporting period, yet the 22.69 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 (786) 320-7111 (Registrant's telephone number, including area code) N/A (Former name, former address and former fiscal year, if changed since last report) If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards ...

Financial Performance - Net sales increased by 3.1% year over year to $2.88 billion[13] - Gross margin improved by 130 basis points to 29.7%[13] - Net income rose by 192.7% to $66.9 million[14] - Adjusted EBITDA increased by 46.9% to $162.9 million[14] - Adjusted EBITDA margin expanded by 170 basis points to 5.7%[13] - Adjusted net income grew by 55.9% to $137.1 million[14] - Basic and diluted earnings per share increased by 200% to $0.15[14] - Net sales for Q1 2024 increased to $2.877 billion, up from $2.790 billion in Q1 2023[33] - Gross profit rose to $853.992 million in Q1 2024, compared to $792.856 million in Q1 2023[33] - Net income for Q1 2024 was $66.897 million, a significant increase from $22.859 million in Q1 2023[33] - Net income for Q1 2024 increased to $66.897 million, up from $22.859 million in Q1 2023, representing a significant growth[34] Cash Flow and Liquidity - Free cash flow decreased by 58.6% to $52.6 million[14] - Cash and cash equivalents increased to $1.134 billion as of April 28, 2024, up from $602.232 million as of January 28, 2024[22] - Net cash provided by operating activities in Q1 2024 was $81.937 million, compared to $148.712 million in Q1 2023[34] - Capital expenditures in Q1 2024 were $29.299 million, up from $21.573 million in Q1 2023[34] - Proceeds from maturities of marketable securities in Q1 2024 were $535 million, compared to $350 million in Q1 2023[34] - Net cash provided by investing activities in Q1 2024 was $505.701 million, a significant improvement from a net cash used of $66.038 million in Q1 2023[34] - Cash and cash equivalents at the end of Q1 2024 stood at $1.134629 billion, up from $410.204 million at the end of Q1 2023[34] Customer Metrics - Active customers declined by 2.1% to 19.99 million[14] - Autoship customer sales grew by 6.4% to $2.23 billion[14] Balance Sheet and Assets - Total current assets stood at $2.126 billion as of April 28, 2024, slightly up from $2.104 billion as of January 28, 2024[22] - Total liabilities decreased to $2.558 billion as of April 28, 2024, down from $2.676 billion as of January 28, 2024[22] - Accounts receivable decreased by $18.188 million in Q1 2024, compared to a decrease of $25.807 million in Q1 2023[34] - Inventories decreased by $33.147 million in Q1 2024, compared to a decrease of $54.260 million in Q1 2023[34] - Trade accounts payable increased by $38.798 million in Q1 2024, compared to an increase of $82.085 million in Q1 2023[34] Non-GAAP Measures and Financial Health - Adjusted EBITDA and adjusted net income are non-GAAP measures used to assess performance, excluding non-cash charges and other items[24][26] - Free cash flow is calculated as net cash from operating activities less capital expenditures, providing additional insight into financial health[28] Strategic Initiatives and Future Plans - The company plans to manage growth effectively, expand into new jurisdictions, and introduce new products and services[21] Share-Based Compensation - Share-based compensation expense increased to $65.385 million in Q1 2024 from $48.553 million in Q1 2023[34] Investor Relations - Chewy will host a conference call on May 29, 2024, to discuss Q1 2024 financial results[30]

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell- side) analysts often affect a stock's price, do they really matter? Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Chewy (CHWY) . Chewy currently has an average brokerage recommendation ( ...

Chewy (CHWY) closed the last trading session at $16.38, gaining 8.6% over the past four weeks, but there could be plenty of upside left in the stock if short-term price targets set by Wall Street analysts are any guide. The mean price target of $23.89 indicates a 45.9% upside potential. The average comprises 22 short-term price targets ranging from a low of $16 to a high of $37, with a standard deviation of $6.23. While the lowest estimate indicates a decline of 2.3% from the current price level, the most o ...

Market participants will be closely following the financial results of Chewy in its upcoming release. The company plans to announce its earnings on May 29, 2024. The company is forecasted to report an EPS of $0.21, showcasing a 5% upward movement from the corresponding quarter of the prior year. Meanwhile, the latest consensus estimate predicts the revenue to be $2.87 billion, indicating a 2.92% increase compared to the same quarter of the previous year. In terms of the entire fiscal year, the Zacks Consens ...

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chewy. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Chewy (CHWY) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.Over the past month, shares of this online pet store have returned -12.5%, compared to the Zacks S&P 500 composite's +1.3% change. During this period, the Zacks Consumer Products - Staples industry, which Chewy falls in, has gained 4%. The key question now is: What could be the stock's future direction?Wh ...