Pet Goods Retailer Chewy Reports Better-Than-Expected Q4 Earnings, Topline Growth And Profitability Exceed Guidance

Core Insights - Chewy Inc. reported a fourth-quarter adjusted EPS of 28 cents, a 55.6% increase year-over-year, surpassing the consensus of $0.05 [1] - The company achieved sales of $3.25 billion, reflecting a 14.9% year-over-year growth, exceeding both the consensus of $3.2 billion and management's guidance of $3.18 billion to $3.2 billion [1] Sales Performance - Autoship customer sales reached $2.62 billion, marking a 21.2% increase [2] - Net Sales Per Active Customer rose by 4.1% to $578 [3] Profitability Metrics - Chewy's gross margin remained stable at 28.5%, unchanged from the previous year [3] - Adjusted EBITDA increased from $86 million to $125 million [3] Management Commentary - CEO Sumit Singh highlighted that topline growth and profitability exceeded the high-end of guidance for both the fourth quarter and full year 2024, driven by strong active customer growth and Autoship customer loyalty [4] Future Guidance - For fiscal year 2025, Chewy expects sales between $12.30 billion and $12.45 billion, with a year-over-year growth of approximately 6% to 7%, compared to Wall Street's estimate of $12.42 billion [4] - The company anticipates a 2025 adjusted EBITDA margin of 5.4% to 5.7% [5] - For Q1 2025, Chewy expects sales of $3.06 billion to $3.09 billion, slightly above the consensus of $3.05 billion, and adjusted EPS of $0.30 to $0.35, compared to the consensus of $0.17 [5] Stock Performance - Following the earnings report, CHWY stock increased by 5.53% to $35.47 [5]