Q1 2025 Chewy Inc Earnings Call Transcript
Key Points
- Chewy Inc (CHWY) exceeded expectations with Q1 net sales increasing by over 8% to $3.12 billion.
- The Autoship subscription program reached a record high, with customer sales of $2.56 billion, representing approximately 82% of Q1 net sales.
- Active customers grew by 3.8% year-over-year, reaching 20.8 million, with an increase of approximately 240,000 customers sequentially.
- Chewy Inc (CHWY) generated $192.7 million of adjusted EBITDA, representing a 6.2% adjusted EBITDA margin and a year-over-year increase of approximately 50 basis points.
- The company successfully expanded its Chewy Vet Care practices to 11 locations, with plans to open 8 to 10 new clinics in fiscal year 2025.
- Despite strong performance, Chewy Inc (CHWY) faces potential challenges from tariffs, which could impact pricing in hardgoods or discretionary categories.
- The departure of CFO David Reeder could lead to transitional challenges as the company seeks a replacement.
- Chewy Inc (CHWY) is operating in a market with flat net household formation, which could limit growth opportunities.
- The company anticipates modest sequential declines in adjusted EBITDA margin throughout the year due to typical seasonality and the timing of investments.
- Chewy Inc (CHWY) is maintaining its full-year 2025 net sales outlook, indicating potential caution in adjusting the range upward despite strong Q1 results.
Warm welcome to Chewy's first quarter 2025 earnings call. My name is Emily, and I'll be coordinating your call today. (Operator Instructions)
I will now hand over to our host, Natalie Nowak, Director of Investor Relations, to begin. Natalie, please go ahead.
Thank you for joining us on the call today to discuss our first quarter results for fiscal year 2025. Joining me today are Chewy's CEO, Sumit Singh and CFO, David Reeder.
Our earnings release, which was filed with the SEC earlier today has been posted to the Investor Relations section of our website. In addition to the earnings release, a presentation summarizing our results is also available on our website at investor.chewy.com.
On our call today, we will be making forward-looking statements, including statements concerning Chewy's financial results and performance, industry trends, strategic initiatives, share repurchase program and the environment in which we operate, share repurchase program, and the environment in
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