I'd now like to turn the call over to Sumit. The company provides pet food and treats, pet supplies … We expect some of these to be temporary in nature, while others are likely to remain active hotspots for us to manage throughout the year. We expect our full-year 2021 net sales to be between $8.9 billion and $9.0 billion, representing 25% to 26% year-over-year growth. For now, we're maintaining the level of investments that we've committed to make sure that there's business continuity and customer experience preservation in terms of managing our shipments. Sure. Well, I think advertising and marketing is an interesting one in 2021, and it's hard to predict sitting so far up in the year on how this line is actually going to play out. Driving 200 basis points of gross margin improvement in this difficult operating environment reflects our focused execution across multiple customer offerings and the strong and recurring purchase behaviors of our customers over time, combined with the benefits of our scale. More importantly, compounding is attracting new customers to Chewy Health, with 65% of new compounding customers either being new to Chewy entirely or existing Chewy customers who are first-time healthcare consumers. And the past couple of years, specifically the last three years, we've scaled marketing expense from 11% of revenue in 2018 to this past -- we were 8.8% in 2019 and then 2020 was 7.2%, 7.3%. For example, in the second quarter, we launched proprietary machine learning-driven software, which streamlines order routing and allocation across our growing FC network to optimize shipment volume, customer promise, and cost to fulfill. And some of these offerings are early stages that we're actually maturing into. Hi, Steph, this is Sumit. So as we've said before, look, we operate the business over the long term. Our 2021 guidance reflecting net sales growth of 25% or better and adjusted EBITDA that is approximately two times what we generated last year. Thanks. The reported $0.36 earnings per share for the quarter. Active customer growth and continued strength in purchasing behavior were key drivers of Q4 and full-year 2020 momentum. Second-quarter net sales per active customer, or NSPAC, increased $48, or 13.5%, to $404. See, we believe that with this guidance of $1.8 billion incremental growth, we're going to capture more than 50% of growth that will happen in the online channels in 2021, which is a powerful statement in itself. Here are a few data points to apprise you of the ramp. What this reflects is the efficacy of our marketing spend, which primarily focuses on acquiring and then developing customers to produce higher levels of profitable sales that increase the longer they stay with us. OK, thanks. Thank you, guys. I think you answered. We expect that NSPAC growth will remain strong for the balance of the year as the 2020 cohort continues to mature, and we expand our customer offerings. Looking at the Q4 trends within our key verticals, third-party hardgoods sales grew 40% faster than the business overall, and proprietary brand hardgoods sales more than doubled year over year. And second, we needed to prepare for a significant change in operating conditions. Sumit, I have a question for you just on the multiyear. The Motley Fool has a disclosure policy. SG&A, excluding share-based compensation, totaled $412.1 million in the second quarter of 2021, or 19.1% of net sales, an increase of 110 basis points. Fourth-quarter adjusted EBITDA was $60.8 million, and adjusted EBITDA margin improved 340 basis points to 3%. Our next question comes from Peter Keith with Piper Sandler. This could affect reported net sales because we do not book the revenue from an order until it ships. This impeded our ability to staff our FCs at desired levels and achieve optimal productivity. Yeah, Seth, this is Mario. So we haven't broken down numbers. To gain an even greater appreciation of our top-line momentum, we believe it is also insightful to look at our net sales growth on a two-year stacked basis. That's higher than cohorts in 2019 in the first year following their acquisition. Congrats on a great year. But, you know, we are tracking it closely. Our next question comes from Seth Basham with Wedbush Securities. Steven Forbes -- Guggenheim Securities -- Analyst. Our next question comes from Seth Basham with Wedbush Securities. Marketing is an area where the landscape evolved rapidly in Q2. And then by the time they get old, and you have newborn 2 or 3 or 4, you start to recycle clothes. After that, I will turn the call over to Mario to discuss our fourth-quarter and full-year 2020 results in greater detail, as well as our first-quarter and full-year 2021 guidance. Learn more about Chewy Inc.'s (CHWY) upcoming earnings announcement. While there may be a few less indulgences on treats and toys as they return to the office, and some consumers might crush up more as they venture out and about, we don't believe that is going to alter the long-term trajectory of the pet category's ongoing shift toward greater online penetration. And then to answer the second part of your question, yes, it has -- you know, from a shipping point of view, OK, shipping supply is when you utilize the dry ice or cold chain, you know, yes, you have a little bit of a higher burden on the shipping supplies cost. Can you give us a sense for like with the early -- you gave us some growth rates, which was nice to see. I'll answer that. Weaker sales take a bite out of Chewy stock. We finished the quarter with $725 million of cash and cash equivalents on the balance sheet and no debt. Mario will provide more color to this line item. Found insideThis book presents the essential steps of Munger's investing strategy, condensed here for the first time from interviews, speeches, writings, and shareholder letters, and paired with commentary from fund managers, value investors, and ... And then secondly, as it relates to the customers acquired in this second quarter, what type of LTV do you expect to add to those customers versus the customers acquired in the last year given the record high CAC that I think that you guys are incurring this quarter? It is ramping very quickly. Research news, charts, stock market performance and earnings. But the margin is among the highest we've ever recorded, 27.5%. Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer. So, look, we -- no, we don't guide to active customer adds in the year. Hey, Doug, I'll take the first part of that question, and then Sumit will address your second part. And in pet, we actually estimate CPM has increased over 80% year over year in these months. At the same time, we don't intend to leave any opportunities on the table and reserve the option of making investments that produce long-term customer acquisition benefits, even as they affect short-term profitability. Our retention rates remained stable as well. I will conclude my remarks by reiterating my confidence in our second-half outlook. And with Mario's recent comments today, we're actually seeing consumers spend higher earlier. We disclaim any obligation to update any forward-looking statements, except as required by law. Looking ahead to 2021, we will continue to benefit from the evolving marketplace and our strategic execution should enable us to generate 25% revenue growth or more and further expand our adjusted EBITDA margins. Friar Under Fire for Child-Sex Comments; Former Navy SEAL in Hot Water; Questions over Doctor-Patient Privilege in Holmes Case. Our Autoship subscriber rate is equal or better in the pharma space. So, you've talked about the [Inaudible] the [Inaudible] of curves. You talked about rising ad costs --. Hey, good afternoon. Hey, thanks. To better demonstrate the dynamics of new customer adds and retention as they relate to net active customer adds, we have included a supplemental section on this topic in our shareholder letter this quarter. We have now crossed the halfway point of 2021, and our results once again demonstrate the strength of our business model and the incredible bond between pets and pet parents. Good afternoon, everyone. Let me start by updating you on the latest developments across our fulfillment network. It took us 7.5 years to reach our first $1 billion quarter and only two years to reach the $2 billion quarterly sales mark. Now, let's review our margin performance. That's a very good sign. Thank you. So, no, we don't see a compression. Not only was this budget that's been in line with the Q2 expectations we outlined on our last earnings call, but it is also approximately twice as much as we spent on these items in the first quarter. Next, I am excited to share some of the many innovations we have been working on at Chewy. CC-Transcript Open Close. Sep 3, 2020 12:30PM EDT. Good afternoon, and welcome to the Chewy second-quarter 2021 earnings conference call. And then secondly, as it relates to the customers acquired in this second quarter, what type of LTV do you expect to add to those customers versus the customers acquired in the last year given the record high CAC that I think that you guys are incurring this quarter? Second-quarter Autoship customer sales as a percentage of net sales increased 200 basis points to 70.3%. Services like compounding, which, at the present moment, are available only to our end customers, show how Chewy is uniquely positioned to assist pet parents who need customized solutions in an otherwise limited marketplace. After submitting your request, you will … So this is a pretty significant increase, both top line, and bottom line. So, you won't find any discernable pattern there. And so, you know, it just -- with our -- with this type of a proposition, it just creates a lucrative flywheel for the veterinarians to be able to effectively participate, and it opens up both the marketplace for not only the vet -- or the TAM for the veterinarians to participate, but also consumers in the way that we will improve compliance. So, if we start with the cohort that joined us in the first half of 2020, so that's been a topic of conversation in the past. The Zacks Consensus Estimate was of a loss of 2 cents. Great question. So, this one, we're very excited about. And, you know, when you look at the density of space and the pet type that might be more suitable, it does give a little bit of a tailwind to the small pet data point. The first is the sharp recovery of input costs across advertising platforms. Amidst flat to declining industry level pet traffic, Chewy's traffic in Q2 approximately increased or was up approximately 20-percentage-point premium to the overall industry. I'll take it. But if you look at the sales for Autoship in last year alone, about $4.9 billion, as we reported it, that's greater than the entire sales -- total net sales in the previous year. Connect with friends faster than ever with the new Facebook app. Then let me switch, these elevated costs you're seeing in labor and marketing, there's no particular reason why you have visibility and when -- into when those would change? Analysts polled by Refinitiv had expected earnings of 9 cents per share. Just wanted to follow up on the active customer adds questions. And some of these offerings are early stages that we're actually maturing into. Our next question will come from Steph Wissink with Jefferies. Sorry. Corsair Gaming last announced its quarterly earnings data on August 3rd, 2021. For further information, please refer to the risk factors and other information in Chewy's 10-K and 8-K filed earlier today and in our other filings with the SEC. Here are a few data points to apprise you of the ramp. ET. I was curious if you could provide a context around how this revenue share compares to other options vets may have today and/or whether you think the improved value proposition has now neutralized the fulfillment preference, enabling the customer to truly drive the decision process as we think about the potential for market share gains into the future? As a result of these increased investments, Q2 SG&A leverage was minimal. However, other areas like wet dog food are still being affected by industrywide production capacity limitations. Online penetration rates in the retail food and supplies category are estimated to have grown from 7% in 2015 to 30% in 2020 and are expected to reach 53% by 2025, which is in line with the current online penetration rate of categories like books and electronics. Feel free to leave a like if you enjoyed the video. With that, I'll turn the call over to the operator. New York (CNN Business) Online pet supply retailer Chewy got a huge boost during the pandemic as more consumers shopped … So, you know -- but on a consumables basis, we're able to forecast repeat purchase and frequency pretty accurately. Chewy last released its earnings results on June 9th, 2021. The reported $0.09 EPS for the quarter, beating the consensus estimate of ($0.02) by $0.11. The business earned $2.14 billion during the quarter, compared to analysts' expectations of $2.13 billion. 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