Chewy tops expectations

“Topline growth and profitability exceeded the high-end of our guidance ranges for both the fourth quarter and full year 2024,” said Sumit Singh, Chief Executive Officer of the US digital retailer Chewy, when announcing the financial results for the fiscal fourth quarter and full year 2024 ended 2 February. “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.”

The net sales for the Fiscal Year (FY) 2024 of 11.86 bn dollars improved by 6.4 per cent year over year, the pet supply e-commerce business announced. The gross margin of 29.2 per cent expanded 80 basis points year over year and the adjusted EBITDA was 570.5 mio dollars, an increase of 202.5 mio dollars year over year. That made an adjusted net income of 446.8 mio dollars, an increase of 150.6 mio dollars year over year. In the FY Chewy won 431 000 active new customers, each with net sales of 578 dollars, according to the report.

In the fiscal Q4 the net sales of 3.25 bn dollars improved 14.9 per cent year over year, while the gross margin of 28.5 per cent expanded 30 basis points.

The net income was 22.8 mio dollars, including share-based compensation expense and related taxes of 99.7 mio dollars, and the adjusted EBITDA of 124.5 mio dollars showed an increase of 38.1 mio dollars year over year.

Just a few days ago, it was announced in a letter to the state that Chewy intends to lay off 674 employees at the Dallas fulfilment centre. Chewy did not comment on this.