Chewy Has Strong Q4 to End Successful 2022

PetSmart-owned online pet product retailer Chewy has shared its Q4 and full-year 2022 results for the period ended Jan. 29, 2023, which saw net sales increase more than 13% year-over-year in both periods.

In Q4, Net sales were $2.71 billion, an increase of 13.4% year-over-year. Gross margin was 28.1%, growing 270 basis points compared to Q4 2021. Net income in the quarter was $6.1 million, including share-based compensation expense of $50.2 million.

For the full fiscal year, net sales were $10.1 billion, an increase 13.6% year-over-year. Gross margin was 28.0%, growing 130 basis points compared to fiscal 2021. Net income was $49.2 million, including share-based compensation expense of $163.2 million.

“Our fourth quarter and full year fiscal 2022 results cap an incredible year. Against the backdrop of a rapidly changing operating and economic environment, Chewy produced record-high revenue, profitability, and free cash flow,” said Sumit Singh, CEO of Chewy. “Chewy’s disciplined execution and dedication to serving pet parents and partners with a widening ecosystem of offerings led to another year of market share gains in the pet category, which continues to demonstrate its resilience in the present environment.”

The increase in full-year sales for Chewy coincide with an increase in pet ownership. According to the American Pet Products Association (APPA), the vast majority of U.S. households (70%) in 2022 owned at least one pet.

Chewy sells private label food, supplements, toys, supplies and more.