Q2 2024 Chewy Inc Earnings Call Transcript
Key Points
- Chewy Inc (CHWY) reported Q2 net sales growth of approximately 3% to $2.86 billion, reaching the high end of their guidance range.
- Autoship customer sales grew by approximately 6%, representing 78% of net sales, highlighting the program's convenience and value.
- The company achieved a new record in net sales per active customer (NSPAC) at $565, growing over 6% in the quarter.
- Chewy Inc (CHWY) generated $145 million of adjusted EBITDA, representing a 5.1% adjusted EBITDA margin and a year-over-year increase of approximately 190 basis points.
- The company reported strong free cash flow generation of approximately $91 million and ended the quarter with $695 million in cash, cash equivalents, and marketable securities.
- Active customer growth was modest, with the company maintaining a flat outlook for active customers for the year.
- Despite improvements, the overall pet household year-over-year growth remains relatively flat.
- The company noted that gross margin will fluctuate on a quarterly basis, indicating potential variability in profitability.
- Chewy Inc (CHWY) continues to face a competitive environment, particularly in the hard goods segment.
- The company is not planning any significant incremental investment in Canada, which may limit growth opportunities in that market.
Good morning all, and thank you for joining us for the Chewy Second-Quarter 2024 earnings call. My name is Carlie and I'll be the call coordinator today. (Operator instructions) I'll now hand over to your host, Jen Hsu, investor relations to begin.
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Thank you for joining us on the call today to discuss our second-quarter results for fiscal year 2024. Joining me today are Chewy's CEO, Sumit Singh, and CFO, David Reeder. Our earnings release, which was filed with the SEC earlier today has been posted to the Investor Relations section of our website. In addition to the earnings release, a presentation summarizing our results is also available on our website at investor.chewy.com.
On our call today, we will be making forward-looking statements, including statements concerning Chewy's financial results and performance, industry trends, strategic initiatives, share repurchase programs, and the environment
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