What drove Chewy's gross profit growth in Q1 2025?

Chewy's gross profit growth in Q1 2025 was primarily driven by significant top-line revenue growth and improved operational efficiency: 1. **Revenue Growth**: Chewy experienced a 14.9% year-over-year increase in sales, reaching $3.25 billion in Q4 2024. This growth was fueled by factors such as increased active customer numbers, a rebound in hard goods sales, and strong Autoship customer loyalty. Autoship, which accounts for 80.6% of total sales, grew by 21% year-over-year. 2. **Operational Efficiency**: The company's gross profit margin improved to 29.2% in Q4 2024, up from 28.4% in the previous year. This improvement reflects supply chain efficiency gains, indicating better management of costs and increased profitability. In summary, Chewy's gross profit growth in Q1 2025 was driven by substantial revenue growth and enhanced operational efficiency, contributing to its robust financial performance.