2026-03-25 11:21:56
Chewy, Inc. Reports Q4 and Full Year 2025 Financial Results with 6.2% Sales Growth
Expected Stock impact: Slightly Positive
Chewy, Inc. (NYSE: CHWY) announced its financial results for the fourth quarter and full fiscal year 2025, which ended on February 1, 2026. The company reported net sales of $12.60 billion for the fiscal year, reflecting a 6.2% increase compared to the previous year. On a normalized basis, sales growth was 8.3% when adjusted for the 52-week period. The gross margin improved to 29.8%, an increase of 60 basis points year-over-year. However, net income for the year was reported at $222.8 million, which included share-based compensation expenses totaling $311.2 million. This resulted in a net margin of 1.8%, a contraction of 150 basis points from the prior year. Basic earnings per share decreased to $0.54, down from $0.93, while diluted earnings per share also fell to $0.52 from $0.91. Adjusted EBITDA for the year was $719.2 million, marking a significant increase of $148.7 million year-over-year, with an adjusted EBITDA margin of 5.7%, up 90 basis points. The company also highlighted its record free cash flow of $562 million and an active customer base of 21.3 million. Chewy's CEO, Sumit Singh, expressed confidence in the company's ability to sustain profitable growth and expand margins moving forward. The company will hold a conference call to discuss these results further.
