Chewy, Inc. reported significant financial performance improvements in its latest 10-Q filing for the quarter ending July 28, 2024. The company achieved net sales of $2.86 billion, reflecting a 2.6% increase from $2.79 billion in the same quarter of 2023. For the first half of fiscal 2024, net sales reached $5.74 billion, up 2.9% from $5.58 billion in the prior year. Gross profit for the quarter was $843.8 million, a 7.0% increase compared to $788.7 million in the previous year, while gross profit for the first half rose to $1.70 billion, up 7.4% from $1.58 billion.

The company reported a net income of $299.1 million for the quarter, a substantial increase from $20.2 million in the same period last year. For the first half, net income was $366.0 million, compared to $43.1 million in the prior year. Earnings per share (EPS) also saw a notable rise, with basic EPS at $0.70 for the quarter, compared to $0.05 in the previous year, and $0.85 for the first half, up from $0.10.

Chewy's operational efficiency improved, as evidenced by a positive income from operations of $32.1 million for the quarter, reversing a loss of $16.7 million in the same period last year. Adjusted EBITDA for the quarter was $144.8 million, a 64.3% increase from $88.1 million in the prior year.

The company’s cash and cash equivalents increased to $694.5 million as of July 28, 2024, up from $602.2 million at the end of January 2024. However, marketable securities decreased significantly to $0.5 million from $531.8 million, reflecting a strategic shift in asset allocation.

Chewy has also been active in share repurchases, with a program authorized for up to $500 million. During the quarter, the company repurchased 1.32 million shares for $32.7 million and an additional 17.55 million shares for $500 million. As of July 28, 2024, the remaining value for share repurchases was $467.3 million.

Strategically, Chewy entered into a merger agreement on October 30, 2023, resulting in the restructuring of ownership interests and the establishment of Chewy Pharmacy KY as an indirect wholly-owned subsidiary. This transaction involved a funding amount of $1.9 billion for tax obligations and related expenses.

Overall, Chewy's performance in the latest quarter demonstrates a strong recovery and growth trajectory, driven by increased sales, improved profitability, and strategic financial management.

About Chewy, Inc.

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