The earnings call presented a balanced view with strong revenue growth, record-setting metrics in customer engagement, and successful international expansion. However, challenges in customer acquisition, a challenging macroeconomic environment, and a downward revision in sales guidance indicate areas of concern.

Company Guidance

The guidance provided during Chewy's third-quarter 2023 earnings call was multifaceted, highlighting both achievements and expectations. Chewy reported $2.74 billion in net sales, an 8% increase compared to the prior year, with net sales per active customer reaching $543, a rise of nearly 14%. Autoship customer sales, which now constitute 76.4% of total net sales, grew by 12.8%. Gross margin hit a record 28.5%, and adjusted EBITDA margin remained steady at 3%. Looking forward, Chewy adjusted its fourth-quarter net sales guidance to between $2.78 billion and $2.8 billion, indicating a 3% year-over-year growth, and revised full-year 2023 net sales expectations to between $11.08 billion and $11.1 billion, representing a 10% increase from 2022. The company reiterated its full-year adjusted EBITDA margin outlook of 3% and expects its 2023 free cash flow to exceed 2.5 times that of 2022. Additionally, Chewy reported a strong liquidity position with $957.2 million in cash and marketable securities.

Strong Revenue Growth

Chewy reported $2.74 billion in net sales for Q3, up 8% year-over-year, outpacing the industry's low single-digit growth.

Record Net Sales Per Active Customer (NSPAC)

NSPAC exceeded $540, up nearly 14% year-over-year, demonstrating strong customer engagement.

Autoship Sales Growth

Autoship customer sales reached $2.09 billion in Q3, up 12.8% year-over-year, representing 76.4% of total net sales.

Pharmacy Business Milestone

Chewy's pharmacy business exceeded $1 billion in trailing 12-month net sales, making it the #1 pet pharmacy in America.

Successful Launch in Canada

Initial customer demand in Canada has been strong with high customer satisfaction and promising early indicators.

Record Gross Margin

Gross margin reached a new record of 28.5%, reflecting strong logistics performance and promotional management.

Strong Performance on Black Friday and Cyber Monday

Traffic and sales exceeded expectations, with new customer acquisition 40% higher than the Q3 weekly average.

Strong Free Cash Flow

Q3 free cash flow was $48.5 million, with trailing 12-month free cash flow exceeding $300 million.

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Chewy (CHWY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

CHWY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 01, 2025	2024 (Q4)	0.03 / -	0.07	―	―	―
Dec 04, 2024	2024 (Q3)	0.06 / 0.01	-0.08	112.50% (+0.09)
Aug 28, 2024	2024 (Q2)	0.02 / 0.68	0.04	1600.00% (+0.64)
May 29, 2024	2024 (Q1)	0.04 / 0.15	0.05	200.00% (+0.10)
Mar 20, 2024	2023 (Q4)	-0.04 / 0.07	0.01	600.00% (+0.06)	―
Dec 06, 2023	2023 (Q3)	-0.06 / -0.08	0.01	-900.00% (-0.09)	―
Aug 30, 2023	2023 (Q2)	-0.05 / 0.04	0.05	-20.00% (-0.01)	―
May 31, 2023	2023 (Q1)	-0.04 / 0.05	0.04	25.00% (+0.01)	―
Mar 22, 2023	2022 (Q4)	-0.11 / 0.01	-0.15	106.67% (+0.16)	―
Dec 08, 2022	2022 (Q3)	-0.08 / 0.01	-0.08	112.50% (+0.09)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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CHWY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Dec 04, 2024	$33.62	$33.47	-0.45%
Aug 28, 2024	$25.86	$28.72	+11.06%
May 29, 2024	$16.91	$21.50	+27.14%
Mar 20, 2024	$17.74	$15.92	-10.26%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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