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Chewy Inc. Class A (CHWY-0.13%) has submitted its 10-Q filing for the quarterly period ended October 27, 2024.
Net sales for the quarter increased by 4.8% to $2.9 billion compared to the same period the previous year. This growth was driven by increased customer spending and higher frequency of purchases through the Autoship subscription program.
Cost of goods sold rose by 3.6% to $2.0 billion, reflecting higher product and shipping costs. However, the increase was lower than the sales growth, indicating efficiency gains in the supply chain.
Gross profit increased by 7.9% to $843.9 million, with a gross margin improvement attributed to supply chain efficiencies and margin expansion in consumables and private brands.
Selling, general, and administrative expenses rose by 2.3% to $626.5 million, mainly due to higher share-based compensation expenses, while fulfillment costs decreased slightly.
Advertising and marketing expenses increased by 7.0% to $191.8 million, driven by investments in marketing channels and expansion efforts.
Interest income decreased by 61.7% to $3.9 million due to lower returns on cash and marketable securities.
Other expenses decreased significantly, resulting in a near-neutral position compared to a $34.1 million expense in the previous year, due to changes in the fair value of financial instruments.
Net income for the quarter was $3.9 million, a significant improvement from a loss of $35.4 million in the prior year, reflecting operational improvements and cost management.
Chewy's liquidity remains strong with $506.6 million in cash and cash equivalents, and no outstanding borrowings under its $800 million credit facility.
The company repurchased 11.8 million shares during the quarter under its share repurchase program, with $424.8 million remaining authorized for future repurchases.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Chewy Inc. Class A quarterly 10-Q report dated December 4, 2024. To report an error, please email earnings@qz.com.