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Chewy(CHWY) - 2025 Q2 - Quarterly Results
CHWYChewy(CHWY)2024-08-28 11:03

Financial Performance - Net sales for Q2 2024 reached 2.86billion,ayear−over−yearincreaseof2.62.86 billion, a year-over-year increase of 2.6%[2] - Net sales for the 13 weeks ended July 28, 2024, were 2,858,589, representing a 2.6% increase from 2,785,302inthesameperiodlastyear[13]−Netincomewas2,785,302 in the same period last year[13] - Net income was 299.1 million, with a net margin of 10.5%, an increase of 980 basis points year-over-year[2] - Net income for the 13 weeks ended July 28, 2024, was 299,117,comparedto299,117, compared to 20,207 in the prior year, indicating a significant improvement[13] - Adjusted net income increased to 104.8million,up104.8 million, up 40.2 million from the previous year[2] - Adjusted net income for the 13 weeks ended July 28, 2024, was 104,790thousand,upfrom104,790 thousand, up from 64,577 thousand for the same period in 2023[21] - Basic earnings per share rose to 0.70,anincreaseof0.70, an increase of 0.65 year-over-year[2] - Basic earnings per share for the 13 weeks ended July 28, 2024, were 0.70,comparedto0.70, compared to 0.05 in the prior year[13] - Diluted earnings per share increased to 0.68,up0.68, up 0.63 year-over-year[2] Profitability Metrics - Gross margin improved to 29.5%, up 120 basis points from the previous year[2] - Adjusted EBITDA for the quarter was 144.8million,reflectinganincreaseof144.8 million, reflecting an increase of 56.7 million year-over-year[2] - Adjusted EBITDA for the 13 weeks ended July 28, 2024, was 144,835,a64.3144,835, a 64.3% increase from 88,147 in the same period last year[13] - The net margin for the 13 weeks ended July 28, 2024, was 10.5%, up from 0.7% in the same period last year[13] - Adjusted EBITDA for the 13 weeks ended July 28, 2024, was 144,835thousand,comparedto144,835 thousand, compared to 88,147 thousand for the same period in 2023, reflecting a margin increase from 3.2% to 5.1%[17] Customer Metrics - Active customer count grew to 20 million, with net sales per active customer reaching a record 565[2]−Activecustomersdecreasedby1.8565[2] - Active customers decreased by 1.8% to 20,002 from 20,367 in the prior year[13] Cash Flow and Assets - Net cash provided by operating activities for the 26 weeks ended July 28, 2024, was 205,347, down 33.2% from 307,287inthesameperiodlastyear[13]−Cashandcashequivalentsattheendoftheperiodincreasedto307,287 in the same period last year[13] - Cash and cash equivalents at the end of the period increased to 694,460 from 458,435year−over−year[11]−Freecashflowforthe13weeksendedJuly28,2024,was458,435 year-over-year[11] - Free cash flow for the 13 weeks ended July 28, 2024, was 91,484 thousand, down from 100,931thousandforthesameperiodin2023[25]BalanceSheet−TotalassetsasofJuly28,2024,were100,931 thousand for the same period in 2023[25] Balance Sheet - Total assets as of July 28, 2024, were 3.10 billion, a decrease from 3.19billionattheendofJanuary2024[8]−Totalliabilitiesdecreasedto3.19 billion at the end of January 2024[8] - Total liabilities decreased to 2.62 billion from 2.68billioninJanuary2024[8]OtherFinancialMetrics−Share−basedcompensationexpenseforthe13weeksendedJuly28,2024,was2.68 billion in January 2024[8] Other Financial Metrics - Share-based compensation expense for the 13 weeks ended July 28, 2024, was 82,467 thousand, an increase from 68,302thousandinthesameperiodof2023[21]−Capitalexpendituresforthe13weeksendedJuly28,2024,were68,302 thousand in the same period of 2023[21] - Capital expenditures for the 13 weeks ended July 28, 2024, were 31,926 thousand, down from $57,644 thousand for the same period in 2023[25] - The company anticipates that free cash flow may be affected by the timing of capital investments and fluctuations in growth and working capital[25]