Chewy, the largest pet e-tailer in the United States, reported a significant increase in net income for the thirteen and twenty-six weeks ended July 28, 2024. The company's net income soared to $299.1 million from $20.2 million in the same thirteen-week period the previous year, and to $366 million from $43.1 million for the twenty-six-week period. This remarkable growth was attributed to a release of valuation allowance on deferred tax assets, resulting in a substantial tax benefit of $275.7 million. Basic and diluted earnings per share for the thirteen weeks also saw a substantial increase to $0.70 and $0.68, respectively, compared to $0.05 in the prior year. Net sales grew modestly by 2.6% to $2.86 billion for the thirteen weeks and by 2.9% to $5.74 billion for the...Show More

Chewy, the largest pet e-tailer in the United States, reported a significant increase in net income for the thirteen and twenty-six weeks ended July 28, 2024. The company's net income soared to $299.1 million from $20.2 million in the same thirteen-week period the previous year, and to $366 million from $43.1 million for the twenty-six-week period. This remarkable growth was attributed to a release of valuation allowance on deferred tax assets, resulting in a substantial tax benefit of $275.7 million. Basic and diluted earnings per share for the thirteen weeks also saw a substantial increase to $0.70 and $0.68, respectively, compared to $0.05 in the prior year. Net sales grew modestly by 2.6% to $2.86 billion for the thirteen weeks and by 2.9% to $5.74 billion for the twenty-six weeks, driven by growth in customer spending and the Autoship subscription program. Adjusted EBITDA improved by 64.3% to $144.8 million for the thirteen weeks and by 54.6% to $307.8 million for the twenty-six weeks, reflecting operational efficiencies and margin expansion across healthcare, consumables, and private brands. Chewy continues to adapt to evolving macroeconomic conditions, focusing on logistics, transportation, and supply chain adjustments to meet customer needs. The company's active customer base slightly decreased by 1.8%, but net sales per active customer increased by 6.2%, indicating higher spending per customer. Chewy's liquidity remains strong with $694.5 million in cash and cash equivalents, and the company is well-positioned to fund its operations for the foreseeable future.