Chewy(CHWY) - 2026 Q4 - Annual Results

Financial Performance - Net sales for fiscal year 2025 reached $12.6 billion, representing an 8.3% growth on a normalized 52-week basis[6] - Adjusted EBITDA for fiscal year 2025 was $719 million, reflecting a 26% increase year over year[6] - Net income for fiscal year 2025 was $222.8 million, with a net margin of 1.8%, a contraction of 150 basis points year over year[8] - Adjusted net income increased to $540.5 million, up by $93.7 million year over year[8] - Basic earnings per share for fiscal year 2025 was $0.54, a decrease of $0.39 year over year[8] - Diluted earnings per share for fiscal year 2025 was $0.52, also a decrease of $0.39 year over year[8] - Net income for the 52 weeks ended February 1, 2026, was $222.8 million, a 43.3% decrease from $392.7 million for the 53 weeks ended February 2, 2025[16] - Adjusted EBITDA for the 52 weeks ended February 1, 2026, was $719.2 million, a 26.1% increase from $570.5 million for the 53 weeks ended February 2, 2025[24] - Adjusted net income for the 52 weeks ended February 1, 2026, was $540.5 million, a 21.0% increase from $446.8 million for the previous year[25] - Net income for the 13 weeks ended February 1, 2026, was $39.2 million, compared to $22.8 million for the same period in 2025, representing a 72% increase[26] - Adjusted EBITDA for the 13 weeks ended February 1, 2026, was $162.3 million, with an adjusted EBITDA margin of 5.0%, up from 3.8% in the prior year[26] Customer Metrics - Active customer count reached 21.3 million by the end of fiscal year 2025[6] - Active customers increased by 4.0% to 21.327 million for the 52 weeks ended February 1, 2026, compared to 20.514 million for the previous year[25] - Autoship customer sales for the 52 weeks ended February 1, 2026, were $10,497.1 million, an 11.8% increase from $9,393.3 million for the previous year[25] Cash Flow and Capital Expenditures - Cash and cash equivalents as of February 1, 2026, totaled $860.1 million, up from $595.8 million the previous year[15] - Free cash flow for the 52 weeks ended February 1, 2026, was $562.4 million, a 24.3% increase from $452.5 million for the 53 weeks ended February 2, 2025[25] - Net cash provided by operating activities for the 52 weeks ended February 1, 2026, was $691.6 million, a 16.0% increase from $596.3 million for the previous year[18] - Free cash flow for the 13 weeks ended February 1, 2026, was $232.0 million, compared to $156.6 million for the same period in 2025, indicating a 48% increase[28] - Capital expenditures for the 52 weeks ended February 1, 2026, were $129.2 million, compared to $143.8 million in the previous year[28] - The company anticipates that free cash flow may be affected by the timing of capital investments and fluctuations in growth and working capital[28] Margins and Earnings - Gross margin improved to 29.8%, an increase of 60 basis points year over year[8] - The adjusted basic earnings per share for the 52 weeks ended February 1, 2026, was $1.31, compared to $1.06 for the same period in 2025[27] - The company reported a net margin of 1.8% for the 52 weeks ended February 1, 2026, down from 3.3% in the previous year[26] - Earnings per share (basic) for the 52 weeks ended February 1, 2026, was $0.54, a 41.9% decrease from $0.93 for the previous year[25] - Basic earnings per share for the 52 weeks ended February 1, 2026, was $0.54, down from $0.93 in the prior year, while diluted earnings per share was $0.52, down from $0.91[27] Asset Growth - Total assets increased to $3.366 billion from $3.014 billion year over year[15] - Net sales for the 52 weeks ended February 1, 2026, reached $12,601.5 million, compared to $11,861.3 million for the same period in 2025, marking a 6.2% increase[26] - Net sales for the 13 weeks ended February 1, 2026, were $3,264.7 million, a 0.5% increase from $3,247.4 million for the 14 weeks ended February 2, 2025[16]