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Feb 02

Chewy Q4 2024 Earnings Report

Chewy reported strong revenue growth and improved profitability in Q4 2024, exceeding the high end of guidance ranges.

Key Takeaways

Chewy's Q4 2024 earnings showed net sales of $3.25 billion, up 14.9% year-over-year. The company reported a net income of $22.8 million and adjusted net income of $120 million. Gross margin expanded to 28.5%, while free cash flow more than doubled to $156.6 million.

Net sales increased 14.9% year-over-year to $3.25 billion.

Gross margin expanded to 28.5%.

Net income was $22.8 million for the quarter.

Adjusted diluted EPS grew to $0.28, a 55.6% increase year-over-year.

Total Revenue
$3.25B
Previous year: $2.83B
+14.7%
EPS
$0.28
Previous year: $0.18
+55.6%
Gross margin
28.5%
Adjusted EBITDA
$125M
Adjusted EBITDA margin
3.8%
Gross Profit
$926M
Previous year: $760M
+21.8%
Cash and Equivalents
$596M
Previous year: $332M
+79.6%
Free Cash Flow
$157M

Chewy

Chewy

Forward Guidance

Chewy anticipates continued strong growth in 2025 with focus on innovation and customer loyalty.

Positive Outlook

  • Strong active customer growth momentum.
  • Continued expansion of Autoship customer loyalty.
  • Investment in innovation across the pet category.
  • Enhanced financial discipline supporting profitability.
  • Positive market trends in the pet products and services industry.

Challenges Ahead

  • Macroeconomic uncertainties could impact discretionary spending.
  • Competitive pressures in e-commerce and retail.
  • Potential supply chain disruptions.
  • Pressure on margins due to promotional activities.
  • Ongoing labor and logistics cost headwinds.