Chewy Inc, a leading e-commerce company, has reported strong third-quarter net sales growth of approximately 5% to $2.88 billion. The company’s autoship customer sales reached $2.3 billion, representing 80% of Q3 net sales and a year-over-year increase of about 9%. Active customers ended the quarter with approximately 20.2 million, up 160,000 sequentially.
The company also reported adjusted EBITDA of $138 million, representing a 4.8% margin and a year-over-year expansion of 180 basis points. Gross margin expanded by 80 basis points to 29.3%, while SG&A expenses decreased by 90 basis points to 19% of net sales.
Chewy Inc has also demonstrated robust free cash flow, reporting $151.8 million in Q3. The company expects to achieve a sequential decline in Q4 adjusted EBITDA margin due to seasonality and investments, but remains optimistic about its full-year outlook.
For the full year 2024, Chewy Inc now expects net sales between $11.79 billion and $11.81 billion, representing a 6% year-over-year growth. The company has also raised its adjusted EBITDA margin guidance to a range of 4.6% to 4.8%.
Despite some challenges, including the relatively small Canadian business and challenges in benefiting from hard goods performance improvements, Chewy Inc remains confident about its ability to drive growth and deliver value to shareholders.
Source: https://finance.yahoo.com/news/chewy-inc-chwy-q3-2024-070100481.html