Chewy(US:CHWY)2023-05-30 16:00Financial Performance - Net sales for the thirteen weeks ended April 30, 2023, were $2,784,675, an increase of $356,348 or 14.7% compared to $2,428,327 for the same period in 2022[146]. - Gross profit for the same period increased by $123.6 million, or 18.5%, to $791.5 million, with gross profit as a percentage of net sales rising by 90 basis points[147]. - Net income for the thirteen weeks ended April 30, 2023, was $22,181, compared to $18,472 for the same period in 2022[184]. - The Company reported earnings attributable to common Class A and Class B stockholders of $22.181 million for the 13 weeks ended April 30, 2023, compared to $18.472 million for the same period in 2022, representing a year-over-year increase of approximately 20.5%[190]. - Basic earnings per share increased to $0.05 for the 13 weeks ended April 30, 2023, up from $0.04 for the same period in 2022, reflecting a 25% increase[190]. - Adjusted EBITDA reached $110,174, up 82.1% from $60,516 in the previous year, with an adjusted EBITDA margin of 4.0%[251]. - Net income for the same period was $22,181, a 20.1% increase from $18,472 in the prior year[251]. Cash Flow and Liquidity - Net cash provided by operating activities was $148,392 for the thirteen weeks ended April 30, 2023, compared to $82,433 for the same period in 2022[151]. - Free cash flow for the period was $126,819, significantly up from $6,412 in the previous year[251]. - The company maintains sufficient liquidity with cash and cash equivalents, marketable securities, and availability under its revolving credit facility for at least the next twelve months[150]. - Net cash used in investing activities was $66,038 for the thirteen weeks ended April 30, 2023, primarily for marketable securities and capital expenditures[153]. Sales and Customer Metrics - The company reported an increase in consumables sales by $306,245 or 18.0% to $2,004,384 for the thirteen weeks ended April 30, 2023[146]. - Autoship customer sales increased to $2,080,510, an 18.6% rise from $1,753,681 in the same period last year[251]. - Active customers decreased slightly to 20,419 from 20,601, reflecting a 0.9% decline[251]. Expenses and Costs - Selling, general, and administrative expenses for the period were $583,666, up from $504,283 in the prior year[184]. - Share-based compensation expense totaled $48,553, compared to $25,794 in the prior year[242]. - The Company recorded depreciation expense on property and equipment of $21.3 million for the 13 weeks ended April 30, 2023, compared to $12.1 million for the same period in 2022, indicating an increase of approximately 76.0%[215]. Assets and Investments - Total current assets as of April 30, 2023, were $1.734 billion, an increase from $1.520 billion as of January 29, 2023, indicating a growth of approximately 14.1%[195]. - Total assets increased to $2.738 billion as of April 30, 2023, up from $2.515 billion as of January 29, 2023, representing an increase of approximately 8.9%[195]. - The Company had no outstanding borrowings under the ABL Credit Facility as of April 30, 2023, maintaining a borrowing capacity of $749.6 million[188]. - The Company recorded interest income of $8.878 million for the 13 weeks ended April 30, 2023, compared to $256,000 for the same period in 2022, marking a significant increase[207]. - The estimated purchase price for an acquisition was $43.281 million, with cash and cash equivalents acquired amounting to $2.881 million[210]. Strategic Focus and Operational Changes - The company is focused on margin expansion across its consumables, healthcare, and specialty businesses, contributing to gross profit growth[147]. - The company continues to adapt its logistics and supply chain processes in response to evolving macroeconomic conditions, including rising inflation and interest rates[249]. - The company emphasizes the importance of considering adjusted EBITDA and adjusted EBITDA margin alongside other financial performance measures[254]. - Adjusted Net Income and Adjusted Basic and Diluted Earnings per Share were highlighted as key metrics for performance evaluation[255]. Internal Controls and Compliance - There were no material changes in internal control over financial reporting during the thirteen weeks ended April 30, 2023[158]. - The Company granted 8,895 restricted stock units (RSUs) with a weighted-average grant-date fair value of $35.21 during the 13 weeks ended April 30, 2023[220]. - As of April 30, 2023, total unrecognized compensation expense related to unvested RSUs was $626.0 million, expected to be recognized over a weighted-average period of 3.1 years[222].