Chewy Reports $11.86 Billion in Fiscal Year 2024 Net Sales, 6.4% Increase

Chewy, Inc. reported a fiscal year 2024 net sales of $11.86 billion, reflecting a 6.4% increase from $11.15 billion in fiscal year 2023. The company achieved a net income of $392.74 million, a significant rise from $39.58 million in the previous year, resulting in a net margin of 3.3%. Adjusted EBITDA also saw a substantial increase of 55% to $570.54 million, with an adjusted EBITDA margin of 4.8%. The growth in revenue was primarily driven by increased customer spending and the expansion of the Autoship subscription program, which accounted for 79.2% of net sales.

In terms of operational metrics, Chewy's active customer count rose to 20.51 million, up 2.1% from 20.08 million in the prior year. The net sales per active customer increased by 4.1% to $578, indicating a positive trend in customer engagement and spending. The company also expanded its Autoship customer sales to $9.39 billion, a 10.6% increase from the previous year. Chewy's strategic initiatives included the launch of Chewy Canada, which aims to capture a share of the growing Canadian pet market, and the opening of eight veterinary clinics under the Chewy Vet Care brand.

The company has made significant investments in its infrastructure, including the expansion of its pharmacy fulfillment network and the launch of veterinary clinics, which contributed to a 4.4% increase in selling, general, and administrative expenses to $2.55 billion. Chewy's advertising and marketing expenses also rose by 8.3% to $804.11 million as the company focused on customer acquisition and retention strategies. The total cash and cash equivalents as of February 2, 2025, stood at $595.77 million, with no outstanding borrowings under its $800 million asset-based credit facility.

Looking ahead, Chewy's management expressed optimism about sustaining growth despite macroeconomic challenges such as inflation and rising interest rates. The company plans to continue investing in technology and operational efficiencies to enhance customer experience and drive profitability. However, management cautioned that future growth rates may not be indicative of past performance, and various risks, including competition and supply chain disruptions, could impact results. Chewy remains committed to leveraging its strong brand and customer loyalty to navigate these challenges effectively.