• Net Sales: $3.12 billion, an increase of over 8% year-over-year.

• Hardgoods Growth: 12.3% year-over-year increase.

• Autoship Customer Sales: $2.56 billion, representing 82% of Q1 net sales and a growth of nearly 15% year-over-year.

• Active Customers: 20.8 million, reflecting a 3.8% year-over-year growth.

• Gross Margin: 29.6%, with a year-over-year expansion of approximately 60 basis points after adjusting for onetime benefits.

• Adjusted EBITDA: $192.7 million, representing a 6.2% margin and a year-over-year increase of approximately 50 basis points.

• Free Cash Flow: Nearly $50 million generated in the quarter.

• Share Repurchases: $23.2 million deployed towards share repurchases.

• Chewy Vet Care Locations: Increased to 11 locations across four states.

• Cash and Cash Equivalents: Approximately $616 million, with an overall liquidity position of approximately $1.4 billion.

• Second Quarter 2025 Net Sales Guidance: Between $3.06 billion and $3.09 billion, representing 7% to 8% year-over-year growth.

• Full Year 2025 Net Sales Outlook: Between $12.3 billion and $12.45 billion, approximately 6% to 7% year-over-year growth.

• Full Year 2025 Adjusted EBITDA Margin Outlook: 5.4% to 5.7%.

• Warning! GuruFocus has detected 6 Warning Signs with CHWY.

Release Date: June 11, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Chewy Inc (NYSE:CHWY) exceeded expectations with Q1 net sales increasing by over 8% to $3.12 billion.

• The Autoship subscription program reached a record high, with customer sales of $2.56 billion, representing approximately 82% of Q1 net sales.

• Active customers grew by 3.8% year-over-year, reaching 20.8 million, with an increase of approximately 240,000 customers sequentially.

• Chewy Inc (NYSE:CHWY) generated $192.7 million of adjusted EBITDA, representing a 6.2% adjusted EBITDA margin and a year-over-year increase of approximately 50 basis points.

• The company successfully expanded its Chewy Vet Care practices to 11 locations, with plans to open 8 to 10 new clinics in fiscal year 2025.

Negative Points

• Despite strong performance, Chewy Inc (NYSE:CHWY) faces potential challenges from tariffs, which could impact pricing in hardgoods or discretionary categories.

• The departure of CFO David Reeder could lead to transitional challenges as the company seeks a replacement.

• Chewy Inc (NYSE:CHWY) is operating in a market with flat net household formation, which could limit growth opportunities.

• The company anticipates modest sequential declines in adjusted EBITDA margin throughout the year due to typical seasonality and the timing of investments.

• Chewy Inc (NYSE:CHWY) is maintaining its full-year 2025 net sales outlook, indicating potential caution in adjusting the range upward despite strong Q1 results.