Chewy Inc. Reports Strong Q2 Earnings Results
Chewy Inc. (NYSE: CHWY) experienced an uptick in stock value after announcing better-than-anticipated results for the second quarter of 2024, along with reaffirming its annual guidance. The pet supply retailer has moved forward on a positive trajectory, showing significant financial health.
Strong Financial Performance
The company reported an adjusted earnings per share (EPS) of $0.24, which notably exceeded the consensus estimate of $0.02 and marked an increase from $0.15 recorded a year earlier.
In terms of sales, Chewy generated $2.86 billion during the quarter, reflecting a 2.6% increase year over year. This figure aligned closely with analyst expectations, landing right at the top of the company management's guidance of $2.84 billion to $2.86 billion.
Growth in Autoship Program
Sales through the Autoship subscription program reached $2.24 billion, representing a robust growth rate of 5.8%. This segment plays a crucial role in enhancing customer loyalty and establishing a predictable revenue stream.
Furthermore, the Net Sales Per Active Customer saw an impressive 6.2% increase to $565, establishing a new milestone for the company.
Sumit Singh, CEO of Chewy, attributed the company’s successful quarterly performance to their clear value proposition attracting and engaging customers more deeply. He highlighted that Chewy has now reached a customer base of 20 million active clients, which grew sequentially in the quarter.
Future Outlook and Guidance
Looking ahead, Chewy has forecasted third-quarter sales ranging between $2.84 billion and $2.86 billion, marking an anticipated year-over-year growth of approximately 3% to 4%. The consensus estimate stands at $2.87 billion.
For the entire fiscal year 2024, the company continues to predict sales in the range of $11.6 billion to $11.8 billion, reflecting an expected year-over-year increase of 4% to 6%, while the consensus estimate for revenue is slightly higher at $11.81 billion.
Moreover, Chewy has adjusted its 2024 adjusted EBITDA margin guidance upwards to 4.5% to 4.7%, improving it from the previous forecast of 4.1% to 4.3%.
Stock Price Movements
In recent trading, CHWY stock has witnessed a growth of 2.44%, reaching $26.49 in the premarket session.
Frequently Asked Questions
What were Chewy's earnings per share for Q2 2024?
Chewy reported an adjusted EPS of $0.24 for the second quarter of 2024, exceeding expectations significantly.
How much did Chewy earn in sales during Q2 2024?
The company generated $2.86 billion in sales for the second quarter of 2024, marking a 2.6% increase from the previous year.
What is the expected sales growth for Chewy in Q3 2024?
Chewy forecasts third-quarter sales to range between $2.84 billion and $2.86 billion, indicating potential growth of approximately 3% to 4%.
How did the Autoship program perform in Q2 2024?
Sales through the Autoship program reached $2.24 billion, reflecting a growth rate of 5.8% year over year.
What is Chewy's guidance for the fiscal year 2024?
For fiscal year 2024, Chewy expects sales between $11.6 billion and $11.8 billion, with a year-over-year growth projected at 4% to 6%.
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