Chewy Sees Sales Growth In Q4
A solid fourth quarter helped Chewy boost its fiscal 2023 results, and the company is looking forward to building momentum and supporting innovation in the pet industry.
Net sales of $2.83 billion were up 4.2% year over year while earnings were $31.9 million, or $0.07 per diluted share, as compared to $6.8 million, or $0.02 per diluted share in the year-prior period. Adjusted net income was $80.3 million, or $0.18 per diluted share, compared to $70.3 million, or $0.16 per diluted share in the prior year period.
Net sales for fiscal 2023 were $11.15 billion up 10.2% year over year while earnings were $39.6 million, or $0.09 per diluted share, as compared to $49.9 million, or $0.12 per diluted share in the period in the year before. Adjusted net income was $296.2 million, or $0.69 per diluted share, versus $226.5 million, or $0.53 per diluted share.
“I am proud of the performance the team delivered to close out a strong fourth quarter and full year,” said Sumit Singh, CEO of Chewy. “In 2023, we gained market share while simultaneously expanding margins and accelerating free cash flow generation. As we embark on 2024, we remain committed to further expanding our margins and generating meaningful free cash flow for our shareholders. Furthermore, we are excited about the strategic opportunities ahead and our role in continuing to drive innovation across the pet category.”
In a shareholders letter, Chewy said that over this year it anticipates benefiting from economies of scale as it grows. The rapidly gaining Chewy Health business and retail initiatives such as sponsored ads should help drive gross margin expansion, the company said.
