Chewy, Inc. Reports Strong Revenue Growth and Adjusted Net Income for Q2 2023
Net Sales Reach $2.78 Billion, Adjusted Net Income Reaches $63.32 Million
Chewy, Inc. (CHWY), a leading online r etailer of pet food and supplies, announced its financial results for the 13 weeks and 26 weeks ended July 30, 2023. The company demonstrated robust revenue growth and solid financial performance during this period, with net sales reaching $2.78 billion and adjusted net income totaling $63.32 million.
Net Income and Adjusted Net Income
Chewy reported a net income of $18.95 million for the 13 weeks ended July 30, 2023, compared to $22.35 million for the same period in the previous year. For the 26 weeks ended July 30, 2023, net income amounted to $41.13 million, slightly up from $40.82 million in the prior year.
The company's adjusted net income, which accounts for various factors such as share-based compensation expenses, changes in fair value of equity warrants, and exit costs, demonstrated significant growth. For the 13 weeks ended July 30, 2023, Chewy reported an adjusted net income of $63.32 million, compared to $62.08 million for the same period last year. The 26-week adjusted net income for 2023 reached $150.57 million, marking a substantial increase from $107.75 million in the previous year.
Revenue Performance
Chewy's net sales showcased impressive growth during the reported period. The company's net sales for the 13 weeks ended July 30, 2023, amounted to $2.78 billion, compared to $2.43 billion for the same period in 2022. Over the 26 weeks ended July 30, 2023, net sales reached a total of $5.56 billion, indicating a significant increase from $4.86 billion for the same period in the prior year.
The net margin, representing the ratio of net income to net sales, stood at 0.7% for both the 13-week and 26-week periods ended July 30, 2023. This margin remained steady compared to the previous year's figures, reflecting the company's ability to maintain profitability while scaling its operations.
Chewy's adjusted EBITDA margin, which measures the ratio of adjusted EBITDA to net sales, demonstrated a slight variation. For the 13 weeks ended July 30, 2023, the adjusted EBITDA margin was 3.1%, down from 3.4% in the same period of the previous year. However, for the 26 weeks ended July 30, 2023, the margin increased to 3.5% from 3.0% in the prior year, highlighting the company's ongoing efforts to optimize operational efficiency.
Chewy, Inc. continues to achieve significant growth in both revenue and adjusted net income, solidifying its position as a leading player in the online pet retail industry. Despite minor fluctuations in margins, the company's ability to sustain profitability and enhance its adjusted EBITDA margin underscores its commitment to delivering value to shareholders while meeting the demands of its growing customer base. With a strong performance in the first half of 2023, Chewy remains well-positioned for further expansion and success in the dynamic e-commerce landscape.
