CHEWY INC (NSE:CHWY) Q2 2019 Earnings Conference Call - Final Transcript

Sep 17, 2019 • 05:00 pm ET


CHEWY INC (NSE:CHWY) Q2 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Chewy Second Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session.

[Operator Instructions]

I would now like to hand the conference over to your speaker today, Kelsey Turcotte. Please go ahead.

Kelsey Turcotte

Thank you for joining us on the call today to discuss the results for our second quarter of fiscal 2019. Joining me on today's call are Sumit Singh and Mario Marte, Chewy's CEO and CFO respectively.

Our earnings release and a letter to shareholders, which we filed with the SEC on Form 8-K earlier today have been posted to the Investor Relations section of our website, A link to the webcast of today's conference call can also be found on our site.

We will be making forward-looking statements on this call, including statements concerning Chewy's future prospects, financial results, business strategies and industry trends. Such statements are forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties, which could cause actual results to materially differ from those contemplated by our forward-looking statements. Reported results should not be considered as an indication of future performance. Also note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements except as required by law. Further information, please refer to the risk factors and other information and Chewy's 10-Q filed with the SEC on July 19, 2019, and the Form 8-K that we filed earlier today and our other filings with the SEC.

Also during this call, we will discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the earnings release or letter to our shareholders on our Investor Relations website, which were filed with the SEC on Form 8-K earlier today. These non-GAAP measures are not intended to be a substitute for GAAP results finally, this call in its entirety is being webcast on our Investor Relations website a replay of this call will also be available on our IR website shortly.

I'd now like to turn the call over to Sumit.

Sumit Singh

Thanks, Kelsey, and thanks to all of you for joining us on the call. We are pleased with our results for the second quarter. As Kelsey mentioned, our shareholder letter is posted to our Investor Relations website and I encourage you to review it.

I'll start this afternoon by sharing financial highlights of the quarter, then I'll discuss a few business updates, and finally, I will turn the call over to Mario to discuss our financial results and guidance.

Net sales for the quarter grew 43% year-over-year to $1.15 billion, reflecting the strength of our underlying business model including expansion in our customer base and higher spending among existing customers. Active customers grew 3.4 million year-over-year to 12 million