Chewy, Inc. announced its financial results for the fourth quarter and full 2024 fiscal year. The company's net revenue was $3.25 billion, marking a 14.9% increase compared to the same period last year.
Chewy's Financial Results
In the fourth quarter, Chewy reported net sales of $3.25 billion, marking a 14.9% increase compared to the previous year. The company achieved a gross margin of 28.5%, which expanded by 30 basis points year-over-year. Despite a 40 basis points decrease in net margin to 0.7%, Chewy's net income stood at $22.8 million. Additionally, adjusted EBITDA showed a notable increase of $38.1 million to $124.5 million, reflecting an expansion of the margin by 70 basis points to 3.8%.
Comparison with Market Expectations
Chewy exceeded market expectations with a basic EPS of $0.06 and diluted EPS of $0.05, against an expected $0.03. The adjusted EPS figures also surpassed forecasts at $0.29 and $0.28, respectively. Furthermore, the company's net sales of $3.25 billion exceeded analyst forecasts of $3.2 billion, driven by customer loyalty initiatives like Autoship, which accounted for 80.6% of net sales, up from 76.4% in the prior year.
Chewy's Optimistic Outlook
CEO Sumit Singh expressed optimism for the company's future, highlighting a focus on innovation within the pet category and efforts to grow customer loyalty. While specific financial guidance for upcoming quarters was not provided, Chewy's Q4 2024 performance suggests a positive trajectory. The company's focus on expanding its product offerings and enhancing customer engagement through its digital platforms is expected to drive continued growth.
Chewy is showing solid growth amid challenging economic conditions, focusing on innovation and strengthening market positions. Further expansion and operational optimization are planned to help the company navigate challenges effectively and capitalize on growth opportunities.
