Petco Animal Supplies Q4 2024 Earnings Call Recap

Chewy Inc. (NYSE: CHWY) reported its fourth-quarter 2024 earnings results on March 26, and the pet e-commerce company's leadership discussed its performance and outlook during the accompanying earnings call.

Revenue for the quarter came in at $2.45 billion, up 10.5% year over year. Net income rose 13.6% to $58.4 million, or $0.23 per diluted share. Adjusted for one-time items and other factors, Chewy's adjusted earnings per share (EPS) were $0.26, exceeding analysts' estimates of $0.24.

During the call, Chewy CEO Sumit Semil and CFO Mike Ozan highlighted the company's strong performance in the pet food and supplies categories, which drove the majority of its revenue growth. The duo also noted that Chewy's e-commerce platform continued to gain traction, with online sales accounting for approximately 95% of the company's total revenue.

Semil emphasized Chewy's focus on providing a seamless customer experience, citing the company's efforts to expand its product offerings, improve logistics, and enhance its mobile app. He also discussed Chewy's investments in artificial intelligence, machine learning, and data analytics to better understand customer behavior and preferences.

Ozan provided an update on Chewy's financial performance, noting that the company's gross margin expanded by 120 basis points year over year to 20.4%. He attributed this growth to a combination of factors, including a shift in product mix toward higher-margin pet food and supplies, as well as efforts to optimize logistics and reduce costs.

Looking ahead, Chewy's leadership guided for revenue growth of 9% to 11% in the first quarter of 2025, with adjusted EPS expected to range from $0.24 to $0.26. For the full year, the company anticipates revenue growth of 8% to 10% and adjusted EPS of $1.04 to $1.06.

During the Q&A session, investors pressed Chewy's leadership on topics such as inflation, competition, and the company's plans for international expansion. Semil and Ozan emphasized Chewy's commitment to navigating the current market environment, while also exploring opportunities to drive growth through strategic partnerships and investments.

Overall, Chewy's fourth-quarter earnings report and accompanying earnings call suggest that the pet e-commerce company is well-positioned for continued growth and success in the years ahead.