What does Chewy do and what are its main business segments?

What is Chewy's latest dividend and current dividend yield?

Did Chewy beat or miss consensus estimates last quarter?

What is Chewy's gross profit margin?

What were the key takeaways from Chewy’s earnings call?

What guidance did Chewy's management provide for the next earnings period?

What factors drove the changes in Chewy's revenue and profit?

What were the key takeaways from Chewy's earnings call?

- **Revenue Growth**: Q2 sales up 8.6% YoY to $3.1B, driven by Autoship (15% growth) and Chewy Plus (3% sales penetration in July).
- **Profitability**: Gross margin expanded 90bps to 30.4%, EBITDA margin 5.9% (+80bps YoY). Free cash flow $105.9M, with $125M share buybacks.
- **Strategic Initiatives**: Chewy Plus generating positive gross profit, targeting mid-single-digit sales share. Get Real launch successful, private brands to drive high-margin growth.
- **Leverage & Investments**: 60% of EBITDA margin expansion from gross margin. Houston FC to deliver SG&A leverage in H2. Capitalizing on macro challenges to gain market share.

**【CEO Summary Section】**
- Q2 net sales reached $3.1 billion, up 8.6% YoY, exceeding guidance. Autoship sales accounted for 83% of total sales, growing 15% YoY.
- Chewy Plus program saw 3% of July sales from members, with strong NESPAC and Autoship adoption. Gross margin expanded 90bps to 30.4%, driven by Sponsored Ads and premium categories.
- Adjusted EBITDA was $183.3 million (5.9% margin), up 80bps YoY. Free cash flow was $105.9 million, with $125 million in share buybacks.
- Chewy Plus expected to generate positive gross profit in FY25, targeting mid-single-digit sales penetration.

**【CFO Financial Commentary】**
- Q2 GAAP net sales: $3.1 billion (+8.6% YoY). Gross margin: 30.4% (up 90bps YoY). Adjusted EBITDA: $183.3 million (+34.8% YoY).
- SG&A: $592.8 million (19.1% of sales), deleveraging 30bps YoY due to Houston FC ramp and inventory costs.
- Free cash flow: $105.9 million. CapEx: $28 million (1.5% of sales). Cash: $592 million; liquidity: $1.4 billion.
- FY25 net sales guidance: $12.5-$12.6 billion (7-8% YoY). Adjusted EBITDA margin: 5.4-5.7%.

**【Q&A Key Highlights】**
- **Investments & Leverage**: Houston FC to deliver leverage in H2. 60% of EBITDA margin expansion from gross margin. SG&A to moderate in H2.
- **Gross Margin Trends**: Q2 gross margin peak; promotional environment rational. Sponsored Ads and premium categories driving expansion.
- **Market Share**: Outperforming industry (low-mid single-digit growth). Chewy Plus and Autoship driving share gains.
- **Fresh & Frozen**: Get Real launch strong, targeting 1-day delivery by end-2025. Private brands expected to be high-margin growth driver.
- **Macroeconomic Strategy**: Mitigate tariff impacts via onshoring, selective pricing. Invest in growth programs like Chewy Plus and private brands.


Chewy, Inc. (CHWY) Q2 2025 Earnings Call Transcript

- **Topline Beat**: Q1 net sales +8.3% YoY to $3.12B, driven by Autoship (82% of sales) and hardgoods (+12.3%). 
- **Profitability Growth**: 6.2% EBITDA margin (vs 5.0% FY24), $48.7M free cash flow. 
- **Strategic Wins**: 11 CVC clinics, sponsored ads expansion, Chewy+ beta success. 
- **FY25 Outlook**: $12.3-12.45B net sales (+6-7%), 5.4-5.7% EBITDA margin. 
- **Share Repurchases**: $23.2M in Q1, $383.5M remaining under $500M program.

**【CEO Summary Section】**
- Q1 net sales grew 8.3% YoY to $3.12 billion, exceeding guidance, driven by strong Autoship sales (14.8% growth to $2.56B, 82% of total sales) and hardgoods expansion (+12.3% YoY). Active customers reached 20.8M, up 3.8% YoY, with improved gross additions and churn. 
- Gross margin expanded 60bps YoY to 29.6%, driven by sponsored ads and product mix shift. Adjusted EBITDA of $192.7M reflected 6.2% margin, up 120bps YoY. Free cash flow was $48.7M, with $23.2M in share buybacks.
- Strategic highlights: 3 new CVC clinics (total 11), sponsored ads growth, Chewy+ beta success, and FY25 net sales guidance of $12.3-12.45B (+6-7% YoY). 

**【CFO Financial Commentary】**
- Q1 GAAP net income: $148.9M, up 8.6% YoY. Adjusted EPS: $0.35, matching high end of guidance. 
- Operating expenses: SG&A at 18.5% of sales, with modest leverage expected. Advertising spend at 6.2% of sales, aligned with long-term 6-7% target. 
- FY25 outlook: Adjusted EBITDA margin 5.4-5.7% (midpoint +75bps YoY), free cash flow conversion ~80%, and CapEx 1.5-2% of sales. 

**【Q&A Key Themes】**
1. **Customer Growth Sustainability**: Active adds and retention driven by Autoship, CVC, and Chewy+; Q1 NSPAC up 3.7% YoY. 
2. **Sponsored Ads Expansion**: 1P platform enables off-site ads growth, with 1-3% of sales contribution. 
3. **CVC Clinic Momentum**: 11 clinics open, generating new customers and Chewy.com purchases within 30 days. 
4. **Gross Margin Drivers**: Sponsored ads (largest contributor), Autoship baseload, and health/wellness mix shift. 
5. **Tariffs Impact**: Minimal in FY25 guidance, with 85%+ of sales in domestic-sourced consumables.

Chewy, Inc. (CHWY) Q1 2025 Earnings Conference Call Transcript

- **Revenue Beat**: Q4 sales up 15% YoY, active customers return to growth after eight quarters.
- **Autoship Dominance**: 80.6% of sales, 21% YoY growth, NSPAC $578 (+4.1% YoY).
- **Profit Expansion**: EBITDA margin 4.8% (150bps YoY), free cash flow $452.5M (+24% YoY).
- **Strategic Wins**: Ads at 1% of sales (target 3%), 8 CVC clinics opened in 2024.
- **2025 Outlook**: 6-7% sales growth, EBITDA margin 5.4-5.7%, $0.30-0.35 EPS.


**【CEO Summary Section】**
- **Revenue Growth**: Q4 net sales reached $3.25 billion (15% YoY), full year 2024 sales $11.86 billion (6% YoY). Active customers grew to 20.5 million (2.1% YoY), ending eight quarters of decline.
- **Autoship Dominance**: Autoship sales accounted for 80.6% of Q4 net sales, growing 21% YoY. NSPAC (net sales per active customer) increased 4.1% YoY to $578.
- **Profitability**: Adjusted EBITDA margin expanded to 4.8% (150bps YoY), with free cash flow of $452.5 million, up 24% YoY.
- **Strategic Initiatives**: Sponsored ads contributed 1% of net sales (target 3% long-term). CVC clinics opened 8 locations in 2024, with plans for 8-10 in 2025.

**【CFO Financial Commentary】**
- **Gross Margin**: 28.5% in Q4 (80bps YoY expansion), driven by ads and premium product mix.
- **Operating Efficiency**: SG&A as % of sales improved to 18.7% (down 100bps YoY). Free cash flow conversion rate 80% of EBITDA.
- **Shareholder Returns**: $943 million returned in 2024, including $29.4 million shares repurchased from BC Partners.

**【Q&A Highlights】**
- **Customer Growth**: 400,000+ net adds in Q4, driven by improved marketing ROI and app engagement. 2025 expects low-single-digit active customer growth.
- **Gross Margin Momentum**: 2025 EBITDA margin target 5.4-5.7%, with ads and automation driving efficiency.
- **Automation Progress**: 40%+ volume through automated facilities, targeting 70-80% over time. Houston facility ramping up in 2025.
- **Pet Industry Trends**: E-commerce penetration ~30%, Chewy capturing 2x market growth rate. Minimal pricing pressure expected in 2025.


Chewy (CHWY)-26 Mar 25-2025 Q4 Earnings call transcript

Chewy (CHWY)-4 Dec 24-2025 Q3 Earnings call transcript

Chewy (CHWY)-28 Aug 24-2025 Q2 Earnings call transcript

Chewy Inc - Ordinary Shares (CHWY)-29 May 24-2025 Q1 Earnings call transcript

Chewy Inc - Ordinary Shares (CHWY)-20 Mar 24-2024 Q4 Earnings call transcript

Chewy (CHWY)-6 Dec 23-2024 Q3 Earnings call transcript

Chewy (CHWY)-30 Aug 23-2023 Q2 Earnings call transcript

Chewy (CHWY)-31 May 23-2023 Q1 Earnings call transcript

Chewy (CHWY)-22 Mar 23-2022 Q4 Earnings call transcript

Chewy (CHWY)-9 Dec 22-2022 Q3 Earnings call transcript

Chewy (CHWY)-30 Aug 22-2022 Q2 Earnings call transcript

Chewy (CHWY)-2 Jun 22-2022 Q1 Earnings call transcript

Chewy (CHWY)-30 Mar 22-2021 Q4 Earnings call transcript

Chewy (CHWY)-10 Dec 21-2021 Q3 Earnings call transcript

Chewy (CHWY)-2 Sep 21-2021 Q2 Earnings call transcript

Chewy (CHWY)-11 Jun 21-2021 Q1 Earnings call transcript

Chewy (CHWY)-31 Mar 21-2020 Q4 Earnings call transcript

Chewy (CHWY)-9 Dec 20-2020 Q3 Earnings call transcript

Chewy (CHWY)-10 Sep 20-2020 Q2 Earnings call transcript

Chewy (CHWY)-10 Jun 20-2020 Q1 Earnings call transcript

Chewy (CHWY)-2 Apr 20-2019 Q4 Earnings call transcript

Chewy (CHWY)-9 Dec 19-2019 Q3 Earnings call transcript

Chewy (CHWY)-18 Sep 19-2019 Q2 Earnings call transcript

Chewy (CHWY)-18 Jul 19-2019 Q1 Earnings call transcript

CHWY

CHWY fundamentals

Earnings Call

You can ask Aime