Chewy(US:CHWY)2025-12-10 12:05Financial Performance - Net sales reached $3.12 billion, an increase of 8.3% year over year[7] - Gross margin improved to 29.8%, up 50 basis points year over year[7] - Net income was $59.2 million, with a net margin of 1.9%, an increase of 180 basis points year over year[7] - Adjusted EBITDA was $180.9 million, reflecting a year-over-year increase of $42.7 million[7] - Adjusted EBITDA margin increased to 5.8%, up 100 basis points year over year[7] - Basic earnings per share rose to $0.14, an increase of $0.13 year over year[7] - Diluted earnings per share also increased to $0.14, up $0.13 year over year[7] - Adjusted net income was $135.7 million, an increase of $50.7 million year over year[7] - Net income for the 39 weeks ended November 2, 2025, was $183.6 million, a decrease of 50.4% from $369.9 million in the prior year[23] - Adjusted EBITDA for the 39 weeks ended November 2, 2025, was $556.9 million, reflecting a 24.9% increase from $446.0 million in 2024[23] - Basic earnings per share for the 39 weeks ended November 2, 2025, was $0.44, down 49.4% from $0.87 in the previous year[23] - The adjusted net income for the 39 weeks ended November 2, 2025, was $425.7 million, a 30.3% increase from $326.8 million in 2024[23] - Net income for the 13 weeks ended November 2, 2025, was $59.2 million, compared to $3.9 million for the same period in 2024, representing a significant increase[24] - Adjusted EBITDA for the 39 weeks ended November 2, 2025, reached $556.9 million, up from $446.0 million in 2024, indicating a growth of approximately 24.7%[24] - Adjusted diluted earnings per share for the 39 weeks ended November 2, 2025, was $1.00, compared to $0.75 in 2024, representing a 33.3% increase[25] - Net sales for the 39 weeks ended November 2, 2025, were $9,336.8 million, compared to $8,613.9 million in 2024, showing a growth of approximately 8.4%[24] - Adjusted EBITDA margin for the 39 weeks ended November 2, 2025, was 6.0%, compared to 5.2% in 2024, indicating an improvement of 0.8 percentage points[24] - The net margin for the 39 weeks ended November 2, 2025, was 2.0%, down from 4.3% in 2024, indicating a decline of 2.3 percentage points[24] Customer Engagement and Market Position - The company continues to expand market share and outperform the pet category[4] - Chewy aims to enhance customer engagement through innovative product offerings and services[6] - Active customers increased by 4.9% to 21.155 million compared to 20.160 million in the previous year[23] - Autoship customer sales for the 39 weeks ended November 2, 2025, totaled $7,753.4 million, a 14.4% increase from $6,776.0 million in 2024[23] Cash Flow and Capital Expenditures - Net cash provided by operating activities for the 39 weeks ended November 2, 2025, was $428.2 million, up 10.1% from $388.8 million in 2024[23] - Free cash flow for the 39 weeks ended November 2, 2025, was $330.4 million, an increase of 11.7% compared to $295.9 million in the prior year[23] - Free cash flow for the 39 weeks ended November 2, 2025, was $330.4 million, compared to $295.9 million in 2024, reflecting an increase of about 11.6%[26] - Capital expenditures for the 39 weeks ended November 2, 2025, totaled $97.8 million, compared to $92.9 million in 2024, reflecting an increase of approximately 5.3%[26] - The company anticipates that free cash flow may be affected by the timing of capital investments and fluctuations in growth and working capital[26]