Chewy’s Financial Results for Fiscal Fourth Quarter

Chewy, Inc. (NYSE: CHWY) (“Chewy”), a trusted online destination for pet parents and partners everywhere, has released its financial results for the fiscal fourth quarter and full year 2020 ended Jan. 31, 2021 and posted a letter to its shareholders on its investor relations website.

Fiscal Q4 2020 Highlights:

• Net sales of $2.04 billion grew 51 percent year over year
• Gross margin of 27.1 percent expanded 300 basis points year over year
• Net income of $21.0 million, including share-based compensation expense of $24.0 million
• Net margin of 1.0 percent improved 550 basis points year over year
• Adjusted EBITDA(1) of $60.8 million, an increase of $66.6 million year over year
• Adjusted EBITDA margin(1) of 3.0 percent improved 340 basis points year over year
• Fiscal 2020 Highlights:
• Net sales of $7.15 billion grew 47 percent year over year
• Gross margin of 25.5 percent expanded 190 basis points year over year
• Net loss of $92.5 million, including share-based compensation expense of $129.2 million
• Net margin of (1.3) percent improved 390 basis points year over year
• Adjusted EBITDA(1) of $85.2 million, an increase of $166.2 million year over year
• Adjusted EBITDA margin(1) of 1.2 percent improved 290 basis points year over year

“2020 was an incredibly challenging and unpredictable year for all of us. During this time, Chewy performed exceptionally well and made significant strategic and operational progress. Specifically, we grew net sales by 47 percent year over year, increased our customer base by 43 percent year over year, delivered our first full year of positive adjusted EBITDA and generated the company’s first quarter of positive net income in the fourth quarter of 2020,” said Chewy CEO Sumit Singh. “Years of preparation and focus have positioned us as the Internet’s preeminent neighborhood pet store and a leading pure-play e-commerce company in the pet space. We look forward to a future marked by ongoing innovation and to winning customers’ hearts and minds as we grow to become the most trusted and convenient online destination for pet parents (and partners) everywhere.”

Management will host a conference call and webcast to discuss Chewy’s financial results today at 5 pm ET.

Chewy Fiscal Fourth Quarter and Full Year 2020 Financial Results Conference Call
When: Tuesday, March 30, 2021
Time: 5 pm ET
Conference ID: 10152349
Live Call: 1-866-270-1533 (US/Canada Toll-Free) or 1-412-317-0797 (International)
Replay: 1-877-344-7529 (US Toll-Free), 855-669-9658 (Canada Toll-Free) or 1-412-317-0088 (International)
(The replay will be available approximately two hours after the completion of the live call until 11:59 pm ET on April 6, 2021)
Webcast can be found here.

(1) Adjusted EBITDA and adjusted EBITDA margin are non-GAAP financial measures. See “Non-GAAP Financial Measures” for additional information on non-GAAP financial measures and a reconciliation to the most comparable GAAP measures.