PLANTATION, FLA. — On March 26, Chewy released its financial results for the fourth quarter and full-year 2024, ended Feb. 2. 

Net sales for the fourth quarter were reported at $3.25 billion, a 14.9% increase year-over-year. Gross margin was 28.5%, an increase of 30 basis points year-over-year. Net income was $22.8 million. Net margin was 0.7%, a decrease of 40 basis points. 

Net sales for the full year were reported at $11.86 billion, a 6.4% increase year-over-year. Gross margin was 29.2%, an increase of 80 basis points. Net income was $392.7 million. Net margin was 3.3%, an increase of 290 basis points year-over-year.

“Topline growth and profitability exceeded the high-end of our guidance ranges for both the fourth quarter and full year 2024,” said Sumit Singh, chief executive officer of Chewy. “Our performance was underpinned by strong active customer growth, and compelling Autoship customer loyalty. As we embark on 2025, the momentum in the business has remained strong and we remain committed to executing Chewy’s strategic priorities as we continue to drive innovation across the pet category.”

Active customers continue to rise for the e-commerce giant, reaching 20.5 million in 2024, compared to 20.1 million in 2023. Net sales per active customer (NSPAC) were $578, an increase from $555 in 2023. 

Additionally, autoship sales continue to propel Chewy to new heights. Autoship sales accounted for 80.6% of fourth quarter net sales and 79.2% of 2024 full-year net sales.

“Autoship customer sales increased by 21.2% to $2.62 billion in Q4 and 10.6% to $9.39 billion for the year,” said David Reeder, chief financial officer of Chewy. “Growth in Autoship customer sales outpaced overall top line growth by approximately 630 basis points in Q4 and by 420 basis points in full year 2024.”

In addition to its financial performance, Chewy also shared its guidance for the first quarter of 2025 and the full year. Net sales for the first quarter are expected to be between $3.06 billion and $3.09 billion, about 6% to 7% year-over-year growth. Adjusted diluted earnings per share are expected to be between $0.30 and $0.35. For the full year, net sales are also expected to grow between 6% and 7%, reaching $12.30 billion to $12.45 billion. Adjusted EBITDA margin is expected at 5.4% to 5.7%. 

“We believe that 2024 was an extraordinary year for Chewy, and our strong performance underscores the team’s ability to successfully navigate through a period of normalization for the industry,” Singh said. “We are increasingly confident in our ability to reach our long-term adjusted EBITDA margin target of 10%. 2024 marks another year of strong progress towards this long-term goal. And looking ahead, we expect to expand adjusted EBITDA margin once again in 2025. Overall, we remain optimistic about the opportunity ahead for Chewy and look forward to a productive year ahead.”

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