Summary by Futu AI
Chewy reported robust financial results for Q2 fiscal 2024, with net sales increasing 2.6% to $2.86 billion compared to the same period last year. The company's net income surged to $299.1 million, significantly up from $20.2 million in Q2 2023, while gross profit rose 7% to $843.8 million with margins expanding by 120 basis points to 29.5%.The company demonstrated strong operational efficiency with selling, general and administrative expenses remaining relatively flat at $621.3 million. Autoship customer sales, a key metric for recurring revenue, grew 5.8% to $2.24 billion, representing 78.4% of total net sales. Net sales per active customer increased 6.2% to $565, though active customers slightly decreased by 1.8% to 20 million.Looking ahead, Chewy maintains a strong liquidity position with $694.5 million in cash and cash equivalents. The company initiated a $500 million share repurchase program and completed a significant stock buyback of 17.55 million shares at $28.49 per share. Management remains focused on expanding healthcare and specialty businesses while driving operational efficiencies across the fulfillment network.
