Key Takeaways Chewy reported second-quarter earnings well above forecasts as its customers spent more on pet food and supplies. The retailer had a decline in total active customers, but the ones it did have spent a record amount. Chewy also posted an increase in revenue from those who had their orders shipped to them automatically. Chewy (CHWY) shares surged Wednesday as the online pet supplies retailer posted a much better-thanexpected profit as it set a record for customer spending. The company reported s ...

Chewy (CHWY) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.22 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for nonrecurring items. This quarterly report represents an earnings surprise of 9.09%. A quarter ago, it was expected that this online pet store would post earnings of $0.21 per share when it actually produced earnings of $0.31, delivering a surprise of 47.62%. Over the last four quarters, the company h ...

Revenue and Sales Performance - Net sales for the 13 weeks ended July 28, 2024, increased by 2.6% to $2.858 billion compared to $2.785 billion in the same period last year[76] - Net sales for the thirteen weeks ended July 28, 2024 increased by $73.3 million, or 2.6%, to $2.9 billion compared to $2.8 billion for the thirteen weeks ended July 30, 2023[100] - Net sales per active customer increased by 6.2% to $565 for the 13 weeks ended July 28, 2024, compared to $532 in the same period last year[76] - Net sales per active customer increased $33, or 6.2%, in the thirteen weeks ended July 28, 2024 compared to the thirteen weeks ended July 30, 2023[100] - Autoship customer sales grew by 5.8% to $2.242 billion for the 13 weeks ended July 28, 2024, compared to $2.120 billion in the prior year period[76] Profitability and Margins - Net income for the 13 weeks ended July 28, 2024, surged to $299.117 million from $20.207 million in the prior year period, with net margin improving to 10.5% from 0.7%[76] - Net income for the 13 weeks ended July 28, 2024, was $299.12 million, compared to $20.21 million for the same period in 2023[84] - Adjusted EBITDA for the 13 weeks ended July 28, 2024, rose 64.3% to $144.835 million, with adjusted EBITDA margin increasing to 5.1% from 3.2%[76] - Gross profit for the thirteen weeks ended July 28, 2024 increased by $55.1 million, or 7.0%, to $843.8 million compared to $788.7 million in the thirteen weeks ended July 30, 2023[103] - Gross profit as a percentage of net sales for the thirteen weeks ended July 28, 2024 increased by 120 basis points compared to the thirteen weeks ended July 30, 2023[103] - Adjusted net income for the 13 weeks ended July 28, 2024, increased by 62.3% to $104.790 million compared to $64.577 million in the same period last year[76] - Adjusted net income for the 13 weeks ended July 28, 2024, was $104.79 million, compared to $64.58 million for the same period in 2023[84] - Adjusted earnings per share, diluted, rose by 60.0% to $0.24 for the 13 weeks ended July 28, 2024, compared to $0.15 in the prior year period[76] - Adjusted diluted earnings per share for the 13 weeks ended July 28, 2024, was $0.24, compared to $0.15 for the same period in 2023[84] Customer Metrics - Active customers decreased by 1.8% to 20.002 million as of July 28, 2024, compared to 20.367 million in the prior year period[76] Operating Expenses and Costs - Selling, general and administrative expenses for the thirteen weeks ended July 28, 2024 increased by $1.4 million, or 0.2%, to $621.3 million compared to $619.9 million in the thirteen weeks ended July 30, 2023[105] - Advertising and marketing expenses for the thirteen weeks ended July 28, 2024 increased by $5.0 million, or 2.7%, to $190.5 million compared to $185.5 million in the thirteen weeks ended July 30, 2023[107] - Share-based compensation expense and related taxes for the 13 weeks ended July 28, 2024, was $82.47 million, compared to $68.30 million for the same period in 2023[84] - Exit costs for the 13 weeks ended July 28, 2024, were $0, compared to $5.26 million for the same period in 2023[84] Cash Flow and Liquidity - Net cash provided by operating activities decreased by 22.2% to $123.410 million for the 13 weeks ended July 28, 2024, compared to $158.575 million in the same period last year[76] - Net cash provided by operating activities for the 13 weeks ended July 28, 2024, was $123.41 million, compared to $158.58 million for the same period in 2023[90] - Free cash flow declined by 9.4% to $91.484 million for the 13 weeks ended July 28, 2024, compared to $100.931 million in the prior year period[76] - Free cash flow for the 13 weeks ended July 28, 2024, was $91.48 million, compared to $100.93 million for the same period in 2023[90] - Net cash provided by operating activities for the twenty-six weeks ended July 28, 2024 was $205.3 million, primarily consisting of $366.0 million of net income, offset by $56.9 million of non-cash adjustments and a $90.0 million decrease in working capital[113] - Net cash provided by investing activities for the twenty-six weeks ended July 28, 2024 was $477.2 million, primarily from $538.4 million in maturities of marketable securities, offset by $61.2 million in capital expenditures[116] - Net cash used in financing activities for the twenty-six weeks ended July 28, 2024 was $590.1 million, primarily consisting of $532.0 million for repurchases of common stock[117] - Net cash provided by operating activities for the twenty-six weeks ended July 30, 2023 was $307.3 million, consisting of $43.1 million of net income, $173.9 million of non-cash adjustments, and a $102.5 million increase in working capital[115] - Net cash used in investing activities for the twenty-six weeks ended July 30, 2023 was $172.4 million, primarily consisting of $92.8 million for purchases of marketable securities and $79.2 million for capital expenditures[116] - Net cash used in financing activities for the twenty-six weeks ended July 30, 2023 was $8.1 million[117] Capital Expenditures and Investments - Capital expenditures for the 13 weeks ended July 28, 2024, were $31.93 million, compared to $57.64 million for the same period in 2023[90] Share Repurchases and Equity - The company repurchased and retired 17,550,000 shares of Class A common stock at $28.49 per share for a total of $500 million on June 26, 2024[120] - During the thirteen weeks ended July 28, 2024, the company repurchased and retired 1,321,502 shares of Class A common stock for $32.7 million and 17,550,000 shares for $500.0 million[121] - The remaining authorized value for share repurchases under the Program was $467.3 million as of July 28, 2024[121] Other Financial Metrics - Interest income for the thirteen weeks ended July 28, 2024 increased by $4.0 million, to $12.9 million compared to interest income of $8.9 million in the thirteen weeks ended July 30, 2023[108] - Other income for the thirteen weeks ended July 28, 2024 decreased by $27.7 million, to $1.5 million compared to other income of $29.2 million in the thirteen weeks ended July 30, 2023[110] - Cash and cash equivalents totaled $694.5 million as of July 28, 2024, an increase of $92.2 million from January 28, 2024[111] - The company had $760.2 million of borrowing capacity under the ABL Credit Facility as of July 28, 2024, with no outstanding borrowings[118] - Change in fair value of equity warrants for the 13 weeks ended July 28, 2024, was a loss of $1.13 million, compared to a loss of $29.19 million for the same period in 2023[84] - Deferred income tax benefit for the 13 weeks ended July 28, 2024, was $275.67 million, compared to $0 for the same period in 2023[84]

Financial Performance - Net sales for Q2 2024 reached $2.86 billion, a year-over-year increase of 2.6%[2] - Net sales for the 13 weeks ended July 28, 2024, were $2,858,589, representing a 2.6% increase from $2,785,302 in the same period last year[13] - Net income was $299.1 million, with a net margin of 10.5%, an increase of 980 basis points year-over-year[2] - Net income for the 13 weeks ended July 28, 2024, was $299,117, compared to $20,207 in the prior year, indicating a significant improvement[13] - Adjusted net income increased to $104.8 million, up $40.2 million from the previous year[2] - Adjusted net income for the 13 weeks ended July 28, 2024, was $104,790 thousand, up from $64,577 thousand for the same period in 2023[21] - Basic earnings per share rose to $0.70, an increase of $0.65 year-over-year[2] - Basic earnings per share for the 13 weeks ended July 28, 2024, were $0.70, compared to $0.05 in the prior year[13] - Diluted earnings per share increased to $0.68, up $0.63 year-over-year[2] Profitability Metrics - Gross margin improved to 29.5%, up 120 basis points from the previous year[2] - Adjusted EBITDA for the quarter was $144.8 million, reflecting an increase of $56.7 million year-over-year[2] - Adjusted EBITDA for the 13 weeks ended July 28, 2024, was $144,835, a 64.3% increase from $88,147 in the same period last year[13] - The net margin for the 13 weeks ended July 28, 2024, was 10.5%, up from 0.7% in the same period last year[13] - Adjusted EBITDA for the 13 weeks ended July 28, 2024, was $144,835 thousand, compared to $88,147 thousand for the same period in 2023, reflecting a margin increase from 3.2% to 5.1%[17] Customer Metrics - Active customer count grew to 20 million, with net sales per active customer reaching a record $565[2] - Active customers decreased by 1.8% to 20,002 from 20,367 in the prior year[13] Cash Flow and Assets - Net cash provided by operating activities for the 26 weeks ended July 28, 2024, was $205,347, down 33.2% from $307,287 in the same period last year[13] - Cash and cash equivalents at the end of the period increased to $694,460 from $458,435 year-over-year[11] - Free cash flow for the 13 weeks ended July 28, 2024, was $91,484 thousand, down from $100,931 thousand for the same period in 2023[25] Balance Sheet - Total assets as of July 28, 2024, were $3.10 billion, a decrease from $3.19 billion at the end of January 2024[8] - Total liabilities decreased to $2.62 billion from $2.68 billion in January 2024[8] Other Financial Metrics - Share-based compensation expense for the 13 weeks ended July 28, 2024, was $82,467 thousand, an increase from $68,302 thousand in the same period of 2023[21] - Capital expenditures for the 13 weeks ended July 28, 2024, were $31,926 thousand, down from $57,644 thousand for the same period in 2023[25] - The company anticipates that free cash flow may be affected by the timing of capital investments and fluctuations in growth and working capital[25]

Chewy's profitability flipped from negative to positive over the last year, but the best may still be ahead. Up 75% from its 52-week lows, Chewy (CHWY -3.33%) may have investors feeling as though they've missed a golden opportunity. However, when we zoom out on the time horizon, it is abundantly clear that the best may be yet to come for the leading e-commerce pet specialty retailer. One Wall Street analyst who is echoing these beliefs is Anna Andreeva with Piper Sandler. Raising their outlook on the stock ...

Chewy (CHWY) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term. Shares of this online pet store have returned +4.1% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Internet - Commerce industry, to which Chewy belongs, has lost 1.3% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors a ...

One of our top stock picks for 2024, Chewy Inc (NYSE:CHWY) is set to report earnings before the open on Wednesday, Aug. 28. Though down 3% at $26.71 this afternoon, the equity is enjoying an 11.8% year-to-date lead. Chewy stock experienced a massive 27.1% post-earnings pop this past May, and has since risen even further, though it's been experiencing recent pressure at the $27 level. For this upcoming event, the options pits are pricing in a next-day swing of 18%, regardless of direction, which is larger th ...

As Chewy Inc. (CHWY) prepares to release its second-quarter fiscal 2024 earnings on Aug 28 before the opening bell, investors are keenly evaluating whether the stock offers a compelling investment opportunity. The pet-centric e-commerce company has attracted significant attention, thanks to its robust growth trajectory and strategic initiatives. However, with the earnings just around the corner, it is crucial to determine whether Chewy remains a wise investment opportunity at this stage. Chewy's impressive ...

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Chewy (CHWY) , which belongs to the Zacks Internet - Commerce industry. When looking at the last two reports, this online pet store has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 63.81%, on average, in the last two quarters. For the last reported quarter, Chewy came out with earnings of $0.31 per share versu ...

Investors with an interest in Internet - Commerce stocks have likely encountered both Chewy (CHWY) and MercadoLibre (MELI) . But which of these two companies is the best option for those looking for undervalued stocks? Let's take a closer look. Everyone has their own methods for finding great value opportunities, but our model includes pairing an impressive grade in the Value category of our Style Scores system with a strong Zacks Rank. The proven Zacks Rank puts an emphasis on earnings estimates and estima ...