Chewy Delivers Record-Breaking Q4 Results, Marking Strong Conclusion to Fiscal Year 2024
The e-commerce giant Chewy has made headlines with its impressive fourth-quarter results, capping off a remarkable fiscal year 2024. In a recent conference call, the company's CEO, Sumit Singh, and CFO, David Reeder, shared their excitement about the strong conclusion to the year.
With a reported $3.25 billion in net sales for Q4 2024, representing a 15% year-over-year increase, Chewy has once again demonstrated its ability to deliver impressive growth. The company's full-year net sales of $11.86 billion marked a 6% year-over-year growth, exceeding the high end of their guidance range.
The success can be attributed to several factors, including strong active customer growth and a modest return to growth for hard goods merchandise. Chewy's Autoship program continues to shine, with sales growing by 21% in Q4 2024 and representing 80.6% of net sales during the same period.
A key highlight from the conference call was Sumit Singh's announcement that Chewy has reached an inflection point regarding active customer growth, with expectations for delivering active customer growth in 2025. This milestone comes as a result of efforts to expand and refresh assortment, enhance on-site and mobile app experiences, and refine marketing strategy.
The company's profitability also received attention, with Chewy's adjusted EBITDA margin reaching 4.8% for fiscal year 2024 – the upper end of their guidance range. This represents a 150-basis-point increase from the previous year, driven by strong gross margin and continued operating expense leverage.
With a record $452 million in free cash flow conversion from adjusted EBITDA, Chewy has demonstrated its ability to generate significant cash returns for shareholders. The company's commitment to delivering value to customers while driving growth and profitability has once again paid off in the fourth quarter of 2024.
