CHEWY Reports Second Quarter FY2024 Earnings Results Ending July 31 2023
September 7, 2023
🌥️Earnings Overview
On August 30 2023, CHEWY ($NYSE:CHWY) reported earnings results for the quarter ending July 31 2023. Total revenue for the second quarter of FY2024 was USD 2777.8 million, a 14.3% rise year-on-year. Net income, however, was down 15.2% on the same period in the previous fiscal year to USD 19.0 million.
Stock Price
The stock opened at $27.5 and closed at $27.3, up by 0.2% from its previous closing price of 27.3. CHEWY‘s second quarter earnings report showed strong financial results, which surpassed analysts expectations. This positive financial performance was largely attributed to CHEWY’s focus on innovation and customer satisfaction. The company’s investments in technology and product development have resulted in an improved customer experience and better operational efficiency. As a result, CHEWY has become a leader in the online retail space and is well positioned to continue growing in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Chewy. More…
| Total Revenues | Net Income | Net Margin |
| 10.8k | 49.54 | 0.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Chewy. More…
| Operations | Investing | Financing |
| 525.12 | -662.22 | -12.59 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Chewy. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.9k | 2.54k | 0.85 |
Key Ratios Snapshot
Some of the financial key ratios for Chewy are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 22.3% | – | 0.5% |
| FCF Margin | ROE | ROA |
| 3.1% | 11.4% | 1.3% |
Analysis
At GoodWhale, we have conducted an analysis of CHEWY‘s fundamentals. Our Star Chart classified CHEWY as a ‘cheetah’ type company. We can conclude that such companies have achieved high revenue or earnings growth, however they are considered less stable due to lower profitability. Investors who may be interested in such a company include those looking for short-term capital appreciation and those with more of a growth focus. CHEWY has an intermediate health score of 6/10 with regard to its cashflows and debt, indicating that it is likely to pay off debt and fund future operations. The company is strong in growth, medium in asset, Profitability and weak in dividend. This means that investors can expect solid returns from CHEWY in the short-term, but should be aware of the risks involved with investing in a less profitable company. More…
Peers
The Chewy Inc and its competitors are Amazon.com Inc, Wayfair Inc, Meituan, Walmart Inc, and Alibaba Group. These companies compete with each other in terms of product offerings, prices, and delivery times. Chewy Inc has an edge over its competitors because it offers a wide range of products, competitive prices, and fast delivery times.
– Amazon.com Inc ($NASDAQ:AMZN)
Amazon.com, Inc. is an American multinational technology company based in Seattle, Washington, that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence. It is one of the Big Four tech companies, along with Google, Apple, and Facebook.
As of 2022, Amazon has a market cap of 1.17T and a ROE of 6.04%. Amazon is a leading player in the e-commerce and cloud computing markets. The company has also been investing heavily in digital streaming and artificial intelligence.
– Wayfair Inc ($NYSE:W)
As of 2022, Wayfair Inc has a market cap of 3.42B and a Return on Equity of 29.2%. The company operates an online store that offers a variety of home goods, including furniture, décor, and housewares. Wayfair is headquartered in Boston, Massachusetts, and was founded in 2002.
– Meituan ($SEHK:03690)
Meituan is a Chinese e-commerce platform that offers on-demand services, including food delivery, hotel booking, and ticketing. The company has a market cap of 871.38B as of 2022 and a return on equity of -10.45%. Meituan was founded in 2010 and is headquartered in Beijing, China.
Summary
Investors have been paying close attention to CHEWY‘s second quarter earnings results for FY2024, which were reported on August 30 2023. The company reported total revenue of USD 2777.8 million, an increase of 14.3% compared to the prior year’s quarter.
However, net income was USD 19.0 million, a decline of 15.2% from the same quarter in the previous year. While the top line results suggest that CHEWY is performing well, investors may be rightfully concerned about the drop in net income. It remains to be seen whether CHEWY can continue its growth trajectory and turn around the decline in profitability.
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