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Chewy, Inc. reported strong FY2025 results with net sales of $12.60 billion, up 6.2% from $11.86 billion in FY2024, driven by growth in its core e-commerce platform, Autoship subscriptions, private brands, and expanding pet healthcare services including 18 Chewy Vet Care clinics. Gross profit rose 8.3% to $3.75 billion, reflecting improved margins at 29.8% versus 29.2% prior year, supported by efficient supply chain and vendor rebates. Operating income surged 126% to $254.3 million from $112.6 million, with total operating expenses at $3.50 billion including SG&A of $2.67 billion and advertising of $824.9 million. Net income was $222.8 million, down 43% from $392.7 million due to a prior-year tax benefit, yielding diluted EPS of $0.52 versus $0.91. Cash from operations reached $691.6 million, up 16% from $596.3 million, funding $129.2 million capex and $262.5 million stock repurchases. Balance sheet strengthened with cash at $860.1 million, total assets $3.37 billion, and stockholders' equity $497.9 million. Strategic expansions in vet care, Canada launch, and private brands like Get Real position Chewy for sustained growth in the $157 billion U.S. pet market amid online shift and pet humanization trends.
Chewy, Inc.'s FY2025 (ended February 1, 2026) delivered net sales of $12,601.5 million, a 6.2% increase from $11,861.3 million in FY2024. Gross profit grew 8.3% to $3,753.9 million from $3,467.7 million. Operating income rose sharply 126% to $254.3 million from $112.6 million, as total operating expenses increased 4.2% to $3,499.6 million. Net income was $222.8 million, down 43.2% from $392.7 million primarily due to a $241.0 million tax benefit in the prior year. Diluted EPS was $0.52, compared to $0.91. Comprehensive income totaled $223.6 million. These results reflect resilience in a pet market projected to grow at 4% CAGR through 2029, with Chewy benefiting from 190,000 products, 4,000 brands, and Autoship retention.
Chewy operates as a single reportable segment focused on pet products and services via e-commerce, pharmacy, and vet care. Net sales reached $12,601.5 million, driven by broad assortment including private brands like Frisco, American Journey, and new Get Real dog food. Growth supported by Autoship subscriptions (49% of online buyers used per Packaged Facts), Chewy Pharmacy (#1 in America), telehealth 'Connect with a Vet' (free for registered customers), CarePlus insurance/wellness plans, and expansion to 18 Chewy Vet Care clinics from 8 prior year. Chewy Canada launched in 2023. No geographic or category revenue breakdowns disclosed. Vendor concentration: top three vendors ~39% of sales.
Gross margin improved to 29.8% from 29.2%, aided by vendor rebates reducing COGS ($8,847.6 million, up from $8,393.6 million) and supply chain efficiencies from fulfillment centers serving 80% U.S. overnight. Operating margin expanded to 2.0% from 0.9%, with SG&A at $2,674.7 million (up from $2,551.0 million) and advertising/marketing steady at $824.9 million (up 2.6%). Share-based compensation $297.9 million. Fulfillment costs $1,411.8 million. Critical audit matter: vendor rebates.
Operating cash flow increased 16% to $691.6 million from $596.3 million, driven by net income $222.8 million, share-based comp $297.9 million, depreciation $129.3 million, and working capital changes (e.g., payables +$45.4 million). Investing cash outflow $151.8 million (capex $129.2 million). Financing outflow $276.0 million (stock repurchases $262.5 million). Net cash increase $264.3 million; ending cash $860.1 million. Total assets $3,366.4 million (up from $3,014.5 million), current assets $2,035.8 million (inventories $864.8 million). Liabilities $2,868.5 million; equity $497.9 million (improved from $261.5 million). No debt outstanding under $800M ABL facility; borrowing capacity $783.1 million.
Management emphasizes customer-centric growth, investing free cash flow in healthcare (Vet Care expansion, PracticeHub with 20,000 practices/50% U.S. clinics), technology/AI automation, private brands, and Canada/international. Capital allocation prioritizes long-term growth, margin expansion, cash flow. Macro risks: inflation, interest rates affecting spending. No numerical guidance provided. Post-period, acquired SmartPak Equine for $175 million cash to bolster equine health. Risks include competition, supply chain, economic downturns (pet spending resilient historically).
EPS
$0.52
Revenue
$12.60B
Net Income
$0.22B
Gross Margin
29.8%
Gross Profit
$3.75B
Operating Income
$0.25B
operating margin
2.0%