Chewy's Q4 Earnings Top Estimates, Sales Increase 14.9% Y/Y

Core Insights - Chewy, Inc. reported strong fourth-quarter fiscal 2024 results, with both revenue and earnings exceeding expectations and showing year-over-year growth [1][2][3] Financial Performance - Adjusted earnings were 28 cents per share, surpassing the Zacks Consensus Estimate of 21 cents, marking a 55.6% increase from the previous year [2] - Net sales reached $3,247.4 million, exceeding the Zacks Consensus Estimate of $3,196 million, and reflecting a 14.9% increase from $2,825.9 million in the prior year [3] - Gross profit increased by 16% year over year to $926 million, with gross margin expanding by 30 basis points to 28.5% compared to 28.2% in the same quarter of fiscal 2023 [3] Expense Management - SG&A expenses rose 11.9% year over year to $700.7 million, but as a percentage of net sales, they decreased by 60 basis points to 21.6% [4] - Adjusted EBITDA was $124.5 million, up from $86.5 million in the year-ago quarter, with an adjusted EBITDA margin increase of 70 basis points to 3.8% [4] Financial Health - At the end of the quarter, Chewy had cash and cash equivalents of $595.8 million and total shareholders' equity of $261.5 million [5] - Net cash provided by operating activities was $207.5 million, with free cash flow reported at $156.6 million [5] Future Outlook - For Q1 fiscal 2025, management projects net sales between $3.06 billion and $3.09 billion, indicating 6-7% growth year over year, with adjusted earnings expected between 30 cents and 35 cents per share [6] - For fiscal 2025, Chewy anticipates net sales between $12.30 billion and $12.45 billion, also reflecting a 6-7% year-over-year increase, and expects an adjusted EBITDA margin of 5.4-5.7%, up from 4.8% in fiscal 2024 [6] Stock Performance - Chewy's stock has gained 12.2% over the past six months, outperforming the industry growth of 10.1% [7]