Chewy(CHWY)2025-06-11 11:03Financial Performance - Net sales for Q1 2025 reached $3.12 billion, an increase of 8.3% year-over-year[7] - Gross margin was 29.6%, a decrease of 10 basis points year-over-year[7] - Net income amounted to $62.4 million, with a net margin of 2.0%, down 30 basis points year-over-year[7] - Adjusted EBITDA was $192.7 million, reflecting an increase of $29.8 million year-over-year, with an adjusted EBITDA margin of 6.2%, up 50 basis points[7] - Net sales for the 13 weeks ended May 4, 2025, were $3,116.0 million, an increase of 8.3% compared to $2,877.7 million for the same period in 2024[18] - Net income decreased to $62.4 million, down 6.7% from $66.9 million year-over-year[18] - Adjusted EBITDA rose to $192.7 million, reflecting an 18.3% increase from $162.9 million in the prior year[18] - Adjusted net income increased to $148.9 million, an 8.6% rise from $137.1 million year-over-year[27] Customer Metrics - Active customer growth was reported, contributing to the overall sales momentum[4] - Active customers increased by 3.8% to 20.756 million, up from 19.988 million in the previous year[18] - Autoship customer sales reached $2,562.7 million, a 14.8% increase compared to $2,232.9 million in the previous year[18] Cash Flow and Liquidity - Cash and cash equivalents increased to $616.4 million from $595.8 million as of February 2, 2025[12] - Cash and cash equivalents at the end of the period were $616.4 million, down from $1,134.6 million at the end of the same period last year[16] - Free cash flow for the period was $48.7 million, a decrease of 7.4% from $52.6 million in the same quarter last year[18] - Free cash flow for the 13 weeks ended May 4, 2025, was $48.7 million, down from $52.6 million for the same period in 2024, reflecting a decrease of approximately 7.4%[31] - Net cash provided by operating activities was $86.4 million, representing a 5.5% increase from $81.9 million in the prior year[18] - Net cash provided by operating activities increased to $86.4 million for the 13 weeks ended May 4, 2025, compared to $81.9 million for the same period in 2024, representing an increase of about 5.5%[31] Assets and Liabilities - Total assets rose to $3,060.3 million, compared to $3,014.5 million as of February 2, 2025[12] - Total liabilities decreased slightly to $2,684.7 million from $2,753.0 million[12] Strategic Initiatives - The company aims to continue expanding its market share in the pet category, leveraging its value proposition[4] - The company plans to introduce new products and services while expanding into new jurisdictions[9] - The company is investing in new fulfillment centers, pharmacy facilities, veterinary clinics, and customer service infrastructure, which may affect future cash flow[31] - Capital expenditures for the 13 weeks ended May 4, 2025, were $37.7 million, up from $29.3 million in the same period in 2024, indicating an increase of approximately 28.5%[31] - The company anticipates that free cash flow may be impacted by the timing of capital investments, fluctuations in growth, and changes in working capital[31]