Chewy Inc ( (CHWY) ) has released its Q1 earnings. Here is a breakdown of the information Chewy Inc presented to its investors.
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Chewy Inc., a leading online retailer in the pet products industry, offers a wide range of pet supplies, prescriptions, and services through its user-friendly website and mobile applications. The company partners with numerous trusted brands and also produces its own private label products, aiming to provide a convenient and reliable shopping experience for pet owners.
In its first quarter of fiscal year 2025, Chewy reported solid financial results with net sales reaching $3.12 billion, marking an 8.3% increase year-over-year. The company maintained its earnings per share at $0.15, while adjusted earnings per share saw an increase to $0.36. Chewy’s CEO, Sumit Singh, highlighted the company’s strong start to the fiscal year, emphasizing growth in active customers and robust profitability.
Key financial metrics for the quarter included a gross margin of 29.6% and a net margin of 2.0%. Chewy’s adjusted EBITDA rose to $192.7 million, reflecting an 18.3% increase from the previous year, with an adjusted EBITDA margin of 6.2%. The company also reported a rise in adjusted net income to $148.9 million, showcasing an 8.6% improvement year-over-year.
Chewy’s strategic focus on customer engagement and market share expansion is evident in its 3.8% growth in active customers and a 14.8% increase in Autoship customer sales, which now account for 82.2% of net sales. These figures underscore Chewy’s commitment to enhancing customer loyalty and driving repeat purchases.
Looking ahead, Chewy’s management remains optimistic about sustaining its growth trajectory and continuing to capitalize on the resilient pet products market. The company aims to further strengthen its value proposition and market position through strategic initiatives and customer-centric innovations.