PLANTATION, FLA. — Increases in active customers and autoship sales led e-commerce retail giant Chewy to exceed its expectations for the first quarter of fiscal year 2025 ended May 4.
Net sales were reported at $3.12 billion, an 8.3% increase from $2.88 billion in the first quarter of 2024. Chewy attributed this increase to strong participation from new and existing customers, as well as a favorable mix from consumables and health and wellness categories.
Gross profit was $923.8 million, an 8.17% increase from $854 million. Gross margin was 29.6%, a decrease of 10 basis points year-over-year. Net income was $62.4 million, a 6.73% decrease from $66.9 million. Net margin was 2.0%, a decrease of 30 basis points year-over-year. Adjusted EBITDA was reported at $192.7 million, an 18.3% increase from the prior year period.
“Fiscal year 2025 is off to a strong start as the momentum at Chewy continues,” said Sumit Singh, chief executive officer of Chewy. “We delivered topline growth exceeding the high-end of our net sales guidance range, year-over-year growth in active customers, and compelling profitability and free cash flow generation. These results are a testament to the resiliency of the pet category and underscore the strength of Chewy’s value proposition and our ability to continue to gain market share.”
Chewy’s active customers continue to steadily rise. The retailer reported 20.8 million active customers for the quarter, with net sales per active customer at $583, a 3.74% increase year-over-year. Autoship customer sales hit $2.56 billion, a 14.8% increase year-over-year. These sales accounted for 82.2% of net sales.
“Our Autoship subscription program continues to be a pillar of strength and differentiation for Chewy, enabling high visibility and predictability in our business while also enhancing customer loyalty,” Singh shared during the company’s earnings call on June 11. “… Growth in Autoship customer sales once again outpaced overall top line growth, increasing by nearly 15% in the first quarter.”
Chewy’s consumables category witnessed 6% year-over-year growth, accounting for about 50% of total growth overall for the retailer.
Regarding the unstable tariff situation, the retailer revealed little impact from tariffs on its pricing and overall business, according to David Reeder, chief financial officer of Chewy.
“From our perspective, the vast majority of our portfolio is consumables, 85%-plus of our portfolio is consumables with domestic input source streams, so we see very little impact from tariffs on Chewy in fiscal year 2025, and what we have seen, we’ve embedded in our guidance,” he said during the earnings call.
In addition to its financial performance, the retailer also shared its guidance for the second quarter and fiscal year 2025. For the second quarter, net sales are expected to be between $3.06 billion and $3.09 billion, representing about 7% to 8% year-over-year growth. For the fiscal year, net sales are expected to be between $12.30 billion and $12.45 billion with adjusted EBITDA margin between 5.4% and 5.7%.
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