chewy 1 Q3 2024 Financial Results December 4, 2024 | --- | --- ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Class A Common Stock, par value $0.01 per share CHWY New York Stock Exchange FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended October 27, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SE ...

Financial Performance - Net sales for Q3 2024 reached $2.88 billion, a year-over-year increase of 4.8%[3] - Gross margin improved to 29.3%, up 80 basis points from the previous year[3] - Net income was $3.9 million, with a net margin of 0.1%, an increase of 140 basis points year-over-year[3] - Adjusted EBITDA rose to $138.2 million, reflecting a year-over-year increase of $55.7 million[3] - Adjusted net income increased to $84.9 million, up $21.5 million year-over-year[3] - Net income for the 39 weeks ended October 27, 2024, was $369,946, compared to a net income of $7,694 for the same period last year, marking a significant recovery[16] - Adjusted EBITDA for the 13 weeks ended October 27, 2024, was $138,245, a 67.4% increase from $82,581 in the prior year[21] - The company reported a net margin of 0.1% for the 13 weeks ended October 27, 2024, compared to a net margin of (1.3)% in the same period last year[21] - Adjusted net income for the 13 weeks ended October 27, 2024, was $84,922 thousand, compared to $63,449 thousand for the same period last year, representing a year-over-year increase of 33.5%[26] - Adjusted diluted earnings per share for the 39 weeks ended October 27, 2024, was $0.75, up from $0.50 for the same period last year, reflecting a 50% increase[26] - Adjusted basic earnings per share for the 39 weeks ended October 27, 2024, was $0.77, compared to $0.50 for the same period last year, reflecting a 54% increase[26] Cash Flow and Expenditures - The company reported robust free cash flow generation, underscoring the durability of its business model[3] - Net cash provided by operating activities was $388,809 for the 39 weeks ended October 27, 2024, compared to $386,664 in the same period last year, indicating stable cash flow[16] - Free cash flow increased by 218.2% to $151,767 for the 13 weeks ended October 27, 2024, compared to $47,692 in the prior year[16] - Free cash flow for the 13 weeks ended October 27, 2024, was $151,767 thousand, significantly higher than $47,692 thousand for the same period last year, indicating a growth of 217.5%[30] - Capital expenditures for the 39 weeks ended October 27, 2024, totaled $92,920 thousand, down from $110,902 thousand for the same period last year, a decrease of 16.2%[30] - The company emphasized the importance of free cash flow as a key indicator of liquidity, which is crucial for evaluating operational results[28] Customer Metrics - Active customers saw a sequential increase, contributing to the positive momentum observed in Q2[3] - Active customers remained stable at 20,160, a slight decrease of 0.5% from 20,266 in the previous year[16] - Autoship customer sales reached $2,300,928 for the 13 weeks ended October 27, 2024, an 8.7% increase from $2,116,458 in the same period last year[16] Shareholder Value - The company repurchased $875,197 of common stock during the current period, reflecting a strategic move to enhance shareholder value[16] Operational Focus - Chewy continues to focus on high-quality execution and operational discipline to drive growth[3] - The company partners with approximately 3,500 trusted brands and offers around 115,000 products and services[5] Earnings Per Share - Basic and diluted earnings per share were $0.01, an increase of $0.09 year-over-year[3] - The weighted-average common shares used in computing diluted earnings per share for the 13 weeks ended October 27, 2024, was 426,572 thousand, slightly down from 432,172 thousand for the same period last year[26] - Share-based compensation expense for the 13 weeks ended October 27, 2024, was $80,426 thousand, up from $65,799 thousand for the same period last year, an increase of 22.5%[26] Turnaround Performance - The company reported a net income of $3,932 thousand for the 13 weeks ended October 27, 2024, compared to a net loss of $35,372 thousand for the same period last year, marking a significant turnaround[26]

Chewy Inc. (CHWY) is set to announce its third-quarter fiscal 2024 earnings on Dec. 4 before the opening bell. The pet-centric e-commerce company has attracted attention, thanks to its robust growth trajectory and strategic initiatives. However, with earnings just around the corner, it is crucial to determine whether Chewy remains a wise investment at this stage.Chewy’s impressive growth, solid market position and loyal customer base have fortified its position. The Zacks Consensus Estimate places revenues ...

For Immediate ReleasesChicago, IL – November 29, 2024 – Zacks.com announces the list of stocks and featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include including Sprouts Farmers Market, Inc. (SFM) , Deckers Outdoor Corp. (DECK) , Chewy, Inc. (CHWY) and Torrid Holdings Inc. (CURV) .Here are highlights from Friday’s Analyst Blog:4 Retail Stocks to Buy as Consumer Co ...

Key TakeawaysSprouts Farmers Market, Deckers Outdoor, Chewy and Torrid Holdings are strong retail stocks to buy now.Retail stocks may gain as US consumer confidence has grown for the past two months, hitting an 18-month high.Register now to see our 7 Best Stocks for the Next 30 Days report - free today!U.S. consumer confidence — a key determinant of the economy’s health — improved in back-to-back months. According to the Conference Board, the Consumer Confidence Index surged to 111.7 in November 2024, follo ...

Wall Street expects a year-over-year increase in earnings on higher revenues when Chewy (CHWY) reports results for the quarter ended October 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on December 4, 2024, might help the stock move higher if these key numbers are better than expecta ...

Company Performance - Chewy (CHWY) has returned 46.5% year-to-date, outperforming the Retail-Wholesale sector average of 27.8% [4] - The Zacks Consensus Estimate for Chewy's full-year earnings has increased by 39.1% over the past 90 days, indicating improved analyst sentiment [3] - Chewy currently holds a Zacks Rank of 2 (Buy) [3] Industry Comparison - Chewy belongs to the Internet - Commerce industry, which has 39 stocks and is ranked 74 in the Zacks Industry Rank [5] - The Internet - Commerce industry has gained an average of 32.1% year-to-date, with Chewy outperforming this average [5] - Petco Health & Wellness (WOOF), another Retail-Wholesale stock, has returned 33.9% year-to-date, also outperforming the sector average [4] Peer Analysis - Petco Health & Wellness falls under the Retail - Miscellaneous industry, which has 17 stocks and is ranked 163 in the Zacks Industry Rank [6] - The Retail - Miscellaneous industry has declined by 2.3% year-to-date, while Petco Health & Wellness has shown positive performance [6] - Petco Health & Wellness' consensus EPS estimate for the current year has increased by 4.1% over the past three months and holds a Zacks Rank of 2 (Buy) [5] Sector Overview - The Retail-Wholesale group consists of 210 companies and is ranked 7 within the Zacks Sector Rank [2] - The Zacks Sector Rank includes 16 groups, ranked based on the average Zacks Rank of individual companies within each sector [2]

Retail investors often feel on the outside of the stock market since information can often be hard to access and digest when the factors and trends to be identified aren’t too clear-cut. This is why looking at Wall Street analyst actions can be an important checklist for retail investors when looking at potential opportunities to put their capital to work. What is especially important to keep in mind is that analysts talk to each other, and they more or less have assumptions in mind that drive these stock v ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Chewy (CHWY) , which belongs to the Zacks Internet - Commerce industry.This online pet store has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 28.35%.For the last reported quarter, Chewy came out with earnings of $0.24 per share vers ...