Chewy(CHWY) - 2025 Q1 - Quarterly Results

Financial Performance - Net sales increased by 3.1% year over year to $2.88 billion[13] - Gross margin improved by 130 basis points to 29.7%[13] - Net income rose by 192.7% to $66.9 million[14] - Adjusted EBITDA increased by 46.9% to $162.9 million[14] - Adjusted EBITDA margin expanded by 170 basis points to 5.7%[13] - Adjusted net income grew by 55.9% to $137.1 million[14] - Basic and diluted earnings per share increased by 200% to $0.15[14] - Net sales for Q1 2024 increased to $2.877 billion, up from $2.790 billion in Q1 2023[33] - Gross profit rose to $853.992 million in Q1 2024, compared to $792.856 million in Q1 2023[33] - Net income for Q1 2024 was $66.897 million, a significant increase from $22.859 million in Q1 2023[33] - Net income for Q1 2024 increased to $66.897 million, up from $22.859 million in Q1 2023, representing a significant growth[34] Cash Flow and Liquidity - Free cash flow decreased by 58.6% to $52.6 million[14] - Cash and cash equivalents increased to $1.134 billion as of April 28, 2024, up from $602.232 million as of January 28, 2024[22] - Net cash provided by operating activities in Q1 2024 was $81.937 million, compared to $148.712 million in Q1 2023[34] - Capital expenditures in Q1 2024 were $29.299 million, up from $21.573 million in Q1 2023[34] - Proceeds from maturities of marketable securities in Q1 2024 were $535 million, compared to $350 million in Q1 2023[34] - Net cash provided by investing activities in Q1 2024 was $505.701 million, a significant improvement from a net cash used of $66.038 million in Q1 2023[34] - Cash and cash equivalents at the end of Q1 2024 stood at $1.134629 billion, up from $410.204 million at the end of Q1 2023[34] Customer Metrics - Active customers declined by 2.1% to 19.99 million[14] - Autoship customer sales grew by 6.4% to $2.23 billion[14] Balance Sheet and Assets - Total current assets stood at $2.126 billion as of April 28, 2024, slightly up from $2.104 billion as of January 28, 2024[22] - Total liabilities decreased to $2.558 billion as of April 28, 2024, down from $2.676 billion as of January 28, 2024[22] - Accounts receivable decreased by $18.188 million in Q1 2024, compared to a decrease of $25.807 million in Q1 2023[34] - Inventories decreased by $33.147 million in Q1 2024, compared to a decrease of $54.260 million in Q1 2023[34] - Trade accounts payable increased by $38.798 million in Q1 2024, compared to an increase of $82.085 million in Q1 2023[34] Non-GAAP Measures and Financial Health - Adjusted EBITDA and adjusted net income are non-GAAP measures used to assess performance, excluding non-cash charges and other items[24][26] - Free cash flow is calculated as net cash from operating activities less capital expenditures, providing additional insight into financial health[28] Strategic Initiatives and Future Plans - The company plans to manage growth effectively, expand into new jurisdictions, and introduce new products and services[21] Share-Based Compensation - Share-based compensation expense increased to $65.385 million in Q1 2024 from $48.553 million in Q1 2023[34] Investor Relations - Chewy will host a conference call on May 29, 2024, to discuss Q1 2024 financial results[30]