Chewy optimistic about rest of fiscal year after strong quarter
The retailer’s net sales reached the upper end of its projected range, led by the success of Autoship.
The American online pet retailer posted net sales of $2.86 billion (€2.56B) in the second quarter of their fiscal year (FY) 2024, marking a 2.6% year-on-year (YoY) increase. During the same period in 2023, the company hit sales of $2.78 billion (€2.49B).
Gross profits in Q2 also rose, climbing to $843.8 million (€758.1M) from $788.7 million (€708.6M) last year.
CEO Sumit Singh comments that the company’s performance during the quarter reflects another period of “strong execution,” delivering net sales at the high end of its guidance range.
Autoship
Autoship accounted for 78.4% of Chewy’s net sales from May to July, an increase of 5.8%.
The total amount of recurrent purchases hit $2.2 billion (€1.9B) in Q2 2024, up from $2.1 billion (€1.89B) during the same period in 2023.
Net sales per active customer hit a new record. According to Singh, net sales per active customer were at $565 (€508), which reached “a new record” for the company.
Half-year performance
In the first half of FY 2024, Chewy reported sales of $5.73 billion (€5.15B), up from $5.57 billion (€5B) in H1 2023. Gross profits increased 6.6% to $1.6 billion (€1.4B).
For Q3 2024, Chewy anticipates net sales between $2.84 billion (€2.23B) and $2.86 billion (€2.57B), representing approximately 3-4% YoY growth.
The company expects annual sales to range from $11.6 billion (€10.4B) to $11.8 billion (€10.6B).
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