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

Chewy Inc. CHWY on Wednesday reported a fourth-quarter adjusted EPS of 28 cents, up 55.6% year-over-year, compared to the consensus of $0.05.

The retailer of pet supplies reported sales of $3.25 billion. That’s up 14.9% year over year, compared to the consensus of $3.2 billion and the management guidance of $3.18 billion-$3.2 billion.

Autoship customer sales reached $2.62 billion, up 21.2%. Autoship customers are shoppers in a given fiscal quarter for whom an order has shipped through the Autoship subscription program over a 364-day period.

Also Read: Chewy Q4 Earnings Preview: Analyst Says ‘Consumer Spending Headwinds’ Could Overshadow Growth, Limit Upside

The company reported a gross margin of 28.5%, unchanged from a year ago.

Net Sales Per Active Customer increased by 4.1% to $578.

Adjusted EBITDA increased from $86 million to $125 million.

"Topline growth and profitability exceeded the high-end of our guidance ranges for both the fourth quarter and full year 2024," said Sumit Singh, CEO of Chewy. "Our performance was underpinned by strong active customer growth, and compelling Autoship customer loyalty. As we embark on 2025, the momentum in the business has remained strong and we remain committed to executing Chewy's strategic priorities as we continue to drive innovation across the pet category."

Guidance: For fiscal year 2025, the company expects sales of $12.30 billion-$12.45 billion compared to Wall Street estimate of $12.42 billion, with year-over-year growth of around 6% to 7%.

The company expects a 2025 adjusted EBITDA margin of 5.4%-5.7%

For the first quarter of 2025, Chewy expects sales of $3.06 billion-$3.09 billion compared to the consensus of $3.05 billion.

The company expects first-quarter adjusted EPS of $0.30-$0.35 versus consensus $0.17.

Price Action: CHWY stock is up 5.53% at $35.47 at the last check on Wednesday.

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