Companies /Consumer Cyclical

Chewy Inc - Class A

NYSE: CHWY Internet Retail
$18.17
▲ $0.45 (+2.54%) today
Markets closed · 4:31pm ET

Q3 2024 Earnings

Reported Dec 4, 2024, 7:04am ET · SEC source
$0.20
Miss −12.82%
EPS · est. $0.23 Adjusted
$2.9B
Beat +0.73%
Revenue · est. $2.9B
+10.0%
Beating market
CHWY vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−10%−5%0Dec 4Dec 5report 7:04am ETearnings+0.4%−10.1%
−10%−5%0Dec 4Dec 5earnings+0.4%−10.1%
CHWY −10.1%S&P 500 +0.4%
−10%−5%0Dec 4Dec 5report 7:04am ETearnings+0.6%−10.1%
−10%−5%0Dec 4Dec 5earnings+0.6%−10.1%
CHWY −10.1%NASDAQ +0.6%
−4%0+4%+8%Dec 3Dec 12report 7:04am ETearnings+0.1%−2.0%
−4%0+4%+8%Dec 3Dec 12earnings+0.1%−2.0%
CHWY −2.0%S&P 500 +0.1%
−4%0+4%+8%Dec 3Dec 12report 7:04am ETearnings+1.4%−2.0%
−4%0+4%+8%Dec 3Dec 12earnings+1.4%−2.0%
CHWY −2.0%NASDAQ +1.4%
−0.45%
Day of report
−7.17%
Next session
−2.78%
One week
+6.87%
30 days

S&P 500 over the same 30 days: −3.13%.

Did CHWY Beat Earnings? Q3 2024 Results

Chewy posted a mixed fiscal third quarter, clearing its own revenue guidance and the Wall Street consensus on the top line while falling short on the bottom line. The online pet retailer reported net sales of $2.88 billion for Q3 2024, up 4.8% year over year and ahead of the $2.86 billion analysts had expected, yet adjusted diluted EPS of $0.20 missed the $0.23 consensus estimate by 12.82%. The headline profit shortfall comes despite genuine operational progress: adjusted EBITDA surged 67.4% year over year to $138.25 million, with adjusted EBITDA margin widening 180 basis points to 4.8%, reflecting disciplined cost management and a gross margin that improved 80 basis points to 29.3%. A key driver of revenue momentum was Autoship, whose customer sales grew 8.7% to $2.30 billion and now account for 80.0% of net sales, up from 77.1% a year ago, illustrating deepening recurring revenue engagement even as the active customer base edged down 0.5% to 20.16 million.

Key Takeaways
  • Net sales per active customer increased 4.2% year over year to $567
  • Autoship customer sales as a percentage of net sales increased to 80.0% from 77.1% year over year
  • Gross margin expanded 80 basis points year over year to 29.3%
  • Adjusted EBITDA margin expanded 180 basis points year over year to 4.8%
  • Net sales exceeded the high end of net sales guidance range
  • Sequential increase in active customers

“Our third quarter results continued to build on the positive momentum we observed in Q2. We delivered topline growth exceeding the high-end of our net sales guidance range, a sequential increase in active customers, continued adjusted EBITDA margin expansion, and robust free cash flow generation. These results underscore the durability of our business model, and our team's relentless focus on high-quality execution and operational discipline.”

Chewy CEO, on the earnings call

CHWY YoY Financials

Q3 2024 vs Q3 2023 · SEC filings Q3 2023 Q3 2024
$0$800.0M$1.6B$2.4B$2.7B$2.9BRevenue$781.9M$843.9MGross Profit$5.5M$25.6MOperating Income$1.9M$3.9MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

CHWY Revenue by Segment

Autoship Customer Sales$2.3B+8.7%

Figures from SEC filings and company reports. Not investment advice.