Chewy(CHWY) - 2025 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 reached $2.88 billion, a year-over-year increase of 4.8$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$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$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$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]