Chewy Inc Q1 2023 Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst : Just curious, the language that you're using with gross adds ahead of pre-pandemic levels, I guess the implication there would be that if churn normalizes, you'd be back to kind of net adds in line with kind of the 2018, 2019 period. Is that fair, without asking you to put a time frame on that?

Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst : Okay. Fair enough. And then I guess -- what's that?

Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst : Right, right. Sure. And the spend per customer, are you seeing that kind of return to more normalized levels? I know in the middle of the pandemic, it kind of dipped down for certain year cohorts. Has that normalized? Or is the hard goods component of that still making that a noisy metric?

Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst : Okay. And then final one for me. I had thought kind of early on in your public history that the Autoship kind of penetration rate wasn't expected to grow too much. The 75% kind of surprised us as to where you've been able to get to. Do you think that there's more upside to that number? And are there any kind of quantifiable margin implications from adding the kind of 5 percentage points that you have over the last couple of years? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. MAY 31, 2023 / 9:00PM, CHWY.N - Q1 2023 Chewy Inc Earnings Call

Question: Dylan Douglas Carden - William Blair & Company L.L.C., Research Division - Analyst : Has the health care component been a big part of the increase in penetration?