Chewy(US:CHWY)2024-08-28 11:29Revenue and Sales Performance - Net sales for the 13 weeks ended July 28, 2024, increased by 2.6% to $2.858 billion compared to $2.785 billion in the same period last year[76] - Net sales for the thirteen weeks ended July 28, 2024 increased by $73.3 million, or 2.6%, to $2.9 billion compared to $2.8 billion for the thirteen weeks ended July 30, 2023[100] - Net sales per active customer increased by 6.2% to $565 for the 13 weeks ended July 28, 2024, compared to $532 in the same period last year[76] - Net sales per active customer increased $33, or 6.2%, in the thirteen weeks ended July 28, 2024 compared to the thirteen weeks ended July 30, 2023[100] - Autoship customer sales grew by 5.8% to $2.242 billion for the 13 weeks ended July 28, 2024, compared to $2.120 billion in the prior year period[76] Profitability and Margins - Net income for the 13 weeks ended July 28, 2024, surged to $299.117 million from $20.207 million in the prior year period, with net margin improving to 10.5% from 0.7%[76] - Net income for the 13 weeks ended July 28, 2024, was $299.12 million, compared to $20.21 million for the same period in 2023[84] - Adjusted EBITDA for the 13 weeks ended July 28, 2024, rose 64.3% to $144.835 million, with adjusted EBITDA margin increasing to 5.1% from 3.2%[76] - Gross profit for the thirteen weeks ended July 28, 2024 increased by $55.1 million, or 7.0%, to $843.8 million compared to $788.7 million in the thirteen weeks ended July 30, 2023[103] - Gross profit as a percentage of net sales for the thirteen weeks ended July 28, 2024 increased by 120 basis points compared to the thirteen weeks ended July 30, 2023[103] - Adjusted net income for the 13 weeks ended July 28, 2024, increased by 62.3% to $104.790 million compared to $64.577 million in the same period last year[76] - Adjusted net income for the 13 weeks ended July 28, 2024, was $104.79 million, compared to $64.58 million for the same period in 2023[84] - Adjusted earnings per share, diluted, rose by 60.0% to $0.24 for the 13 weeks ended July 28, 2024, compared to $0.15 in the prior year period[76] - Adjusted diluted earnings per share for the 13 weeks ended July 28, 2024, was $0.24, compared to $0.15 for the same period in 2023[84] Customer Metrics - Active customers decreased by 1.8% to 20.002 million as of July 28, 2024, compared to 20.367 million in the prior year period[76] Operating Expenses and Costs - Selling, general and administrative expenses for the thirteen weeks ended July 28, 2024 increased by $1.4 million, or 0.2%, to $621.3 million compared to $619.9 million in the thirteen weeks ended July 30, 2023[105] - Advertising and marketing expenses for the thirteen weeks ended July 28, 2024 increased by $5.0 million, or 2.7%, to $190.5 million compared to $185.5 million in the thirteen weeks ended July 30, 2023[107] - Share-based compensation expense and related taxes for the 13 weeks ended July 28, 2024, was $82.47 million, compared to $68.30 million for the same period in 2023[84] - Exit costs for the 13 weeks ended July 28, 2024, were $0, compared to $5.26 million for the same period in 2023[84] Cash Flow and Liquidity - Net cash provided by operating activities decreased by 22.2% to $123.410 million for the 13 weeks ended July 28, 2024, compared to $158.575 million in the same period last year[76] - Net cash provided by operating activities for the 13 weeks ended July 28, 2024, was $123.41 million, compared to $158.58 million for the same period in 2023[90] - Free cash flow declined by 9.4% to $91.484 million for the 13 weeks ended July 28, 2024, compared to $100.931 million in the prior year period[76] - Free cash flow for the 13 weeks ended July 28, 2024, was $91.48 million, compared to $100.93 million for the same period in 2023[90] - Net cash provided by operating activities for the twenty-six weeks ended July 28, 2024 was $205.3 million, primarily consisting of $366.0 million of net income, offset by $56.9 million of non-cash adjustments and a $90.0 million decrease in working capital[113] - Net cash provided by investing activities for the twenty-six weeks ended July 28, 2024 was $477.2 million, primarily from $538.4 million in maturities of marketable securities, offset by $61.2 million in capital expenditures[116] - Net cash used in financing activities for the twenty-six weeks ended July 28, 2024 was $590.1 million, primarily consisting of $532.0 million for repurchases of common stock[117] - Net cash provided by operating activities for the twenty-six weeks ended July 30, 2023 was $307.3 million, consisting of $43.1 million of net income, $173.9 million of non-cash adjustments, and a $102.5 million increase in working capital[115] - Net cash used in investing activities for the twenty-six weeks ended July 30, 2023 was $172.4 million, primarily consisting of $92.8 million for purchases of marketable securities and $79.2 million for capital expenditures[116] - Net cash used in financing activities for the twenty-six weeks ended July 30, 2023 was $8.1 million[117] Capital Expenditures and Investments - Capital expenditures for the 13 weeks ended July 28, 2024, were $31.93 million, compared to $57.64 million for the same period in 2023[90] Share Repurchases and Equity - The company repurchased and retired 17,550,000 shares of Class A common stock at $28.49 per share for a total of $500 million on June 26, 2024[120] - During the thirteen weeks ended July 28, 2024, the company repurchased and retired 1,321,502 shares of Class A common stock for $32.7 million and 17,550,000 shares for $500.0 million[121] - The remaining authorized value for share repurchases under the Program was $467.3 million as of July 28, 2024[121] Other Financial Metrics - Interest income for the thirteen weeks ended July 28, 2024 increased by $4.0 million, to $12.9 million compared to interest income of $8.9 million in the thirteen weeks ended July 30, 2023[108] - Other income for the thirteen weeks ended July 28, 2024 decreased by $27.7 million, to $1.5 million compared to other income of $29.2 million in the thirteen weeks ended July 30, 2023[110] - Cash and cash equivalents totaled $694.5 million as of July 28, 2024, an increase of $92.2 million from January 28, 2024[111] - The company had $760.2 million of borrowing capacity under the ABL Credit Facility as of July 28, 2024, with no outstanding borrowings[118] - Change in fair value of equity warrants for the 13 weeks ended July 28, 2024, was a loss of $1.13 million, compared to a loss of $29.19 million for the same period in 2023[84] - Deferred income tax benefit for the 13 weeks ended July 28, 2024, was $275.67 million, compared to $0 for the same period in 2023[84]