Chewy Reports 8.3% Revenue Growth to $3.116 Billion, Net Income Declines 6.7%

Chewy, Inc. reported its financial results for the thirteen weeks ended May 4, 2025, revealing a net sales increase of 8.3% to $3.116 billion, up from $2.878 billion in the same period last year. The company's net income for the quarter was $62.4 million, a decrease of 6.7% compared to $66.9 million in the prior year. The net margin for the quarter was 2.0%, down from 2.3% in the previous year. Despite the decline in net income, adjusted EBITDA rose by 18.3% to $192.7 million, reflecting a strong operational performance.

The company experienced a 3.8% increase in active customers, reaching approximately 20.8 million, and a 3.7% rise in net sales per active customer, which reached $583. Chewy's Autoship customer sales also saw significant growth, increasing by 14.8% to $2.563 billion, representing 82.2% of total net sales. This growth in customer engagement and sales metrics indicates a positive trend in customer retention and purchasing behavior.

Operationally, Chewy has been expanding its fulfillment capabilities, particularly in Houston, Texas, which contributed to an increase in selling, general, and administrative expenses by 8.4% to $653.1 million. The company also reported a rise in share-based compensation expenses, which increased by $8.5 million year-over-year. The total operating expenses for the quarter were $846.9 million, up 7.3% from the previous year, reflecting the company's ongoing investments in growth and infrastructure.

In terms of liquidity, Chewy's cash and cash equivalents increased to $616.4 million, up from $595.8 million at the end of the previous fiscal period. The company did not have any outstanding borrowings under its $800 million asset-based credit facility as of May 4, 2025. Chewy also continued its share repurchase program, buying back 664,533 shares of its Class A common stock for a total cost of $23.2 million during the quarter, leaving approximately $383.5 million available for future repurchases.

Looking ahead, Chewy remains focused on adapting to evolving macroeconomic conditions, including inflation and high interest rates, which may impact consumer behavior. The company plans to continue enhancing its logistics and supply chain processes to meet customer needs while pursuing growth opportunities in its product offerings and service capabilities. Chewy's management expressed confidence in its ability to navigate these challenges and maintain its position as a leading e-commerce platform for pet products and services.