Chewy Shares Strong Q2 Results

Online pet product retailer Chewy has shared its most recent quarterly results, highlighted by a large increase in net sales

For the Q2 period ended July 30, net sales were $2.78 billion, an increase 14.3% YoY. Gross margin was 28.3%, an increase of 20 basis points compared to Q2 of 2022.

 In the latest quarter, net income was $18.9 million, including share-based compensation expense and related taxes of $68.3 million. Chewy’s Adjusted EBITDA was $86.9 million, an increase of $3.8 million YoY.

“We delivered solid results in Q2 across both top line and profitability, with 14% growth exceeding guidance,” said Sumit Singh, CEO of Chewy, which sells private label food, supplements, toys, supplies and more. “Chewy once again gained share as our customers recognize the power of our personalized Autoship service, best-in-class healthcare experience and overall value proposition as key differentiators, resulting in robust ordering behavior, which in turn is driving our strong performance.”

Chewy’s strong quarter is evidence that the pet category continues to grow, even outside of brick-and-mortar stores. A recent survey from Vericast found that about 78% of respondents said they were willing to spend more on pet food and treats in 2023 than in 2022, indicating an interest in premium products.

In fiscal 2022, Chewy reached $10.1 billion in sales with a network of 20.4 million active customers.