Chewy(US:CHWY)2024-08-28 11:03Financial Performance - Net sales for Q2 2024 reached $2.86 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 $2,785,302 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, compared to $20,207 in the prior year, indicating a significant improvement[13] - Adjusted net income increased to $104.8 million, up $40.2 million from the previous year[2] - Adjusted net income for the 13 weeks ended July 28, 2024, was $104,790 thousand, up from $64,577 thousand for the same period in 2023[21] - Basic earnings per share rose to $0.70, an increase of $0.65 year-over-year[2] - Basic earnings per share for the 13 weeks ended July 28, 2024, were $0.70, compared to $0.05 in the prior year[13] - Diluted earnings per share increased to $0.68, 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 $144.8 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, 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 $144,835 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] - 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 $307,287 in the same period last year[13] - Cash and cash equivalents at the end of the period increased to $694,460 from $458,435 year-over-year[11] - Free cash flow for the 13 weeks ended July 28, 2024, was $91,484 thousand, down from $100,931 thousand for the same period in 2023[25] Balance Sheet - Total assets as of July 28, 2024, were $3.10 billion, a decrease from $3.19 billion at the end of January 2024[8] - Total liabilities decreased to $2.62 billion from $2.68 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 $68,302 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]