Chewy Surpasses Q2 Earnings Estimates with $0.24 EPS, $2.86B Revenue; Stock Up 2%

Aug 28, 2024, 12:03 PM

Chewy Inc. reported its second-quarter 2024 financial results, surpassing market expectations. The company achieved adjusted earnings per share (EPS) of $0.24, exceeding the estimated $0.21, while diluted EPS was $0.68. Revenue for the quarter stood at $2.86 billion, matching market expectations and marking a 2.6% increase year-over-year. Chewy's gross margin improved to 29.5%, up 120 basis points from the previous year. The company's net income reached $299.1 million, which includes $82.5 million in share-based compensation expenses, resulting in a net margin of 10.5%, a significant increase of 980 basis points year-over-year. Additionally, Chewy's adjusted EBITDA was reported at $144.8 million, up $56.7 million compared to the same period last year, with an adjusted EBITDA margin of 5.1%, up 190 basis points year-over-year. Chewy projects FY24 sales between $11.6 billion and $11.8 billion. Following the earnings announcement, Chewy's stock rose by 2% in pre-market trading.