PLANTATION, FLA. — Pet consumables and a strong autoship program continue to prove fruitful for e-commerce pet retailer Chewy. The company released its third quarter financial results on Dec. 4.
“Our third quarter results continued to build on the positive momentum we observed in Q2,” said Sumit Singh, chief executive officer of Chewy. “We delivered topline growth exceeding the high-end of our net sales guidance range, a sequential increase in active customers, continued adjusted EBITDA margin expansion, and robust free cash flow generation. These results underscore the durability of our business model, and our team’s relentless focus on high-quality execution and operational discipline.”
Net sales for the third quarter were $2.88 billion, a 4.8% increase year-over-year. Gross margin was 29.3%, an increase of 80 basis points. Net income was reported at $3.9 million.
Net sales per active customer continue to increase, rising from $544 in Q3 of 2023 to $567 in Q3 of 2024. Chewy ended the quarter with 20.2 million active customers, an increase of 160,000.
Autoship sales remain king for Chewy, reaching $2.3 billion in the third quarter, an 8.7% increase year-over-year, and representing 80% of net sales for the quarter — a new record for the retailer.
“Our autoship program enables high visibility and predictability in our business and drives customer stickiness for Chewy,” Singh explained. “… Non-discretionary categories, including consumables and healthcare products and services, accounted for 85% of Q3 net sales. Customers appreciate our comprehensive product catalog and our ongoing efforts to refresh assortment across food, treats and hard goods.
“Over the last few quarters, we have increased our assortment across popular categories such as pet tech, vet food and supplements, to name a few, adding several new premium brands, most of which launched exclusively on Chewy.com,” he added. “Additionally, we are continuously rolling out enhancements to our on-site and in-app experiences to ensure we are providing an even more enjoyable and convenient shopping journey for pet parents.”
Regarding its healthcare offerings, Chewy continues to introduce Vet Care clinics across the country. The company currently has six Chewy Vet Care clinics, meeting its goal of opening four to eight clinics by the end of this fiscal year.
Looking to the fourth quarter of 2024, the retailer expects net sales between $3.18 billion and $3.20 billion, representing 13% year-over-year growth. Full year net sales are expected to be between $11.79 billion and $11.81 billion, an increase of 6% year-over-year.
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