Autoship purchases contribute majority of Chewy’s net sales in 2021 | News

Chewy’s fiscal 2021 net sales improved 24% year-over-year and totaled $8.89 billion, company officials reported. For fiscal 2021, Chewy reported a net loss of $73.8 million, including stock-based compensation expense of $85.3 million.

The company released its financial results for the fourth quarter and fiscal year 2021, ended Jan. 30.

“Our ability to drive 24% net sales growth in 2021, on top of the outsized growth we achieved last year, reflects the sustainability of our business and the pet category beyond the benefits. term of the pandemic, and is a strong testament to Chewy’s ability to execute in the face of rapidly changing macroeconomic conditions,” Chewy CEO Sumit Singh said in a statement. “Net Sales Per Active Customer, or NSPAC, of ​​$430 represents a new record for the company and demonstrates strong customer loyalty and engagement on our platform, as well as our ability to steadily increase our share of wallet. . As we look to 2022 and beyond, our innovation pipeline remains strong, our strategy remains intact, and we remain optimistic about the growth opportunity ahead.

In the fourth quarter, the company reported net sales of $2.39 billion, up 17% year-over-year. Chewy reported a net loss of $63.6 million in the fourth quarter, including a stock-based compensation charge of $15.8 million.

Autoship customer sales increased 21.2% year-over-year to $1.69 billion in the fourth quarter, equating to a record 70.7% of total net sales, Singh and CFO Mario Marte wrote in a statement. letter to shareholders. “On a two-year stack basis, Autoship customer sales increased 77%, reaching an annual rate of $6.8 billion in the fourth quarter, which is nearly equal to Chewy’s total net sales in 2020,” the letter reads.

Highlights of the fourth quarter of fiscal 2021:

  • Gross margin of 25.4% decreased 170 basis points year over year
  • Net margin of (2.7)% decreased 370 basis points year over year
  • Adjusted EBITDA of ($28.1) million, down $88.9 million year-over-year
  • Adjusted EBITDA margin of (1.2)% decreased 420 basis points year over year

Highlights of fiscal year 2021:

  • Gross margin of 26.7% increased 120 basis points year over year
  • Net margin of (0.8)% increased 50 basis points year over year
  • Adjusted EBITDA of $78.6 million, down $6.6 million year-over-year
  • Adjusted EBITDA margin of 0.9% decreased 30 basis points year over year

Ann J. Cox