And call. joining to us you Bob. the all for thanks Thanks, on of
a the As for were we call COVID gathered this just beginning year pandemic. the of realize ago, we scope to
the year. challenging proud to Looking back, execute way incredibly I’m through came of together this Chewtopians incredibly
of team We a their and chains surge vital we redoubled teams our centers receive care that face pandemic navigate our our and healthy forefront. needed. In products or leadership implemented workspaces sure open. team, new customers our frequently our sure and we they and our in would with pets As that supply safety honestly made the had member the their teams and made benefits. response, in friendly to fulfillment the how policies we FCs In about communicated operating member and team the and dedication safe volume, kept
foster compounding a opening of experience and disruptions including the adaptability solved centers. the initiatives, required and home, down strong reasons to teams our seamlessly our fulfillment high-velocity that to on rollout and the of that and them, teams XXXX to And year the for telehealth corporate of customer deliver services, our focused It products, introduction from innovative we strategic even Despite relentlessly of the with Vet with transition. superior as offering, who all several execution caused first challenge and automated our trusted launch XX Our COVID Chewy the to cards personalized by like first the remain the and accelerated of promise. COVID accelerated service speak eGift go some cases, of adapted working backdrop, us spirit that our team. entire These the and challenge to innovations Connect customer and a is staff a will Chewy’s over service million after these parents and landmark in to deliver because history. teams on pet tech rollouts in quickly product
and our billion remarks billion year the behavior will Over mark. quarterly why this the key XXXX reach our in or bringing well for outline discuss I billion XXXX leaves X.X only will QX of $X.XX customer and Exceeding annual another vision our QX sales my year-over-year to long-term next few vision strength first XXXX believe us billion FY full balance use and briefly $X $X minutes, Chewy the is Active I positioned and then and sales results. year full year reach us. for were XXXX us for quarterly discuss XX.X% turn sales guidance. quarter call growth long-term to first took and year over quarter XXXX purchasing the to to full to and It sales in momentum. X profitability $X net billion, as net our will to of greater our I After to net well we XX.X% milestone detail quarter of Mario growth. drivers fourth continued years results years that, as QX growth. $X.XX sales increased full and
our and improved QX, QX. basis During XXX increased customer acquisition points. pace XX% retention accelerated to relative by new Customer reactivations customer by
ended net a customers. quarter added fourth year in the customers the with XX.X million we and X.X active million active As result,
shared adding we new strategy. growing wallet of have then part you customers our the efficiently share key with past, our and a is in platform to As of their growth
and net behaviors Connect with displayed positive in reflecting engaged a a full a stronger repurchase These highly similar cohorts cohorts. by wider the products, such some product X.X in legacy XX.X% million added driven XXXX and The a we annual services customer as personalized and customers, and by cases, For set were cards, assortment year, active purchase Vet. and acquired we to were gift compounding growing customer offerings, of compared behavior growth.
Assessing are we business continue strong. And that gain in vertical, core remains pleased proprietary progress business we note hardgoods, to to by traction our consumables our and brands. healthcare
hardgoods, sales trends Looking third-party at Further our track on have winning to hardgoods proprietary in These lot year. key these the the the that than grew than the year-over-year. and verticals, reported provide faster that QX penetration the us proprietary year-over-year within is a business opportunity and increased basis of doubled brand there more us continuing And XXX hearts within XX% brand customers’ overall. points our sales XX%, share reach right we to areas. results confidence front of throughout in we gains are minds continue hardgoods
Now, let’s review our margin performance.
Fourth line effort health basis XXXX like margin higher XXX a record customer our QX Notably, higher Higher basis. of to a focus are full basis lifetime on EBITDA execution XX.X%, gross LTV, drivers, to margin year-over-year. basis, up versus margin from rates health margins positive margins. high consumables was EBITDA year and and X%, into expanded margin improvement improvement and verticals penetration year another we a on gross Fourth rigorous $XX.X into basis-point to EBITDA. translating sustainable translated increase XXX margin quarter like and verticals of our of or We encouraged XXX brands gross mix into care higher gross shift XXX points a executed year-over-year Approximately year-over-year was structural and basis-point to value, on care. bottom proprietary drive quarter quarter came higher million, hardwoods. and margin points see margin half XX.X%. of adjusted Full hardgoods, adjusted XXXX lower a like out
includes full even if demonstrating we and from more did the the in XXXX, EBITDA adjusted back And this we adjusted prior a a drive EBITDA to X.X%. successfully year XXXX basis was incremental in and $XXX XXXX QX full EBITDA XXX in ability adjusted reserve. year, adjusted business For out our $XX.X Both benefit than million profitability. tax generated million improved and margin onetime releasing points million, tailwind, to $XX.X we scale EBITDA
past believe performance We the provided dynamics of the us in is Chewy’s our relentless given bright, of at and size an look opportunity this advanced front future year of our and future. have focus. with that Our us
even Moving the in challenge of realizing outlining growing forward, to scale to we and you the plan realize profitability. with we sharing intend on it. the greater today of improved balance the and I large in order opportunity will focus executing the against front opportunity this us, remarks in meet my scale ways of and of
with three them. well is we why start important Chewy trends prepared on capitalize to and believe Let’s
people adoption by of in a According comfort, sought analysts, of from pre-pandemic of pet the the is of X-year the XXXX the First and number owning as industry X.X% of owning surged acceleration pet Pet in increase increased households the significant millions companionship CAGR pet joy households. X.X%. to parenthood. number XXXX, in out
is our it new Looking joining own at clear parents in early to their journey. these us pet us data, are that
pets. increase Chewy the profiles XX% newly creation in For creation insights a of a to that our excited with XX% is to profiles kitten, eat recurring puppies a food revenues newly of years in the because adopted more for sustainable advantages and in We in space. adopted example, relationship leading come. win pet us, XXXX, increase observed for Understanding we year-over-year pet the these going their about create puppy get and shred for of needs customers and in and anticipating wants help a toys, up, to long-lasting more grow to stream resulting and us
customers, do the XX% food within ability in expand we drugs and and market trend rate supplies playing grown pet size and in roughly we estimated reach the as XX% billion the $XXX of At we the diet. of Online believe are to market, competitive compete come. we is the COVID company Years areas store pure-play pet accelerator. to preparation into only by e-commerce roadmap proprietary and as increase we is towards following shift and Chewy in books the already will are of XXXX. third XXXX, penetration Difficulty]. to the grow us, space. healthcare electronics. our believe and e-commerce the line new the observing, begun is as services, rates market. win compelling, to current and from [Technical billion pet the expand primarily online a in pet U.S. penetration forward year positioned our continue share market field. of our have of and We offering, and we multiple these That which have favor to see than shift ability has focus neighborhood that additional largely confident prescription minds when underway. for winning and brands opportunity $X opportunity, U.S. second and continue sped U.S. categories our following: more existing wallet by into, growth so and XX% that the and increase expected marked expansion we launch expand is a and reach growth already do so. with since There and exciting in future innovation, health have onetime and expected to XXXX we are are online, The we for vectors past IPO. of continue right, a used believe the roadmap ongoing shift make the durable permanent. a where impact e-commerce time plan up care in e-commerce leading XXXX, healthcare is grow leaves a trend supplies the of pet to the to see That market of share. vision Today, and Acquire to in are hearts in to will this importantly, years U.S. secular and we the we so our and that business services growing which by and pet are growing outside growth XXXX margin channels This opportunity net that U.S. market forward, in like the and Further, in the continuing the accelerate. penetration consists food as and Overall, us ahead to a have internet And is $XX tenant note much with moving catalyst was to is penetration clearly is are us of Chewy We to Equally an category that and to assortment, customer X% billion retail $XXX look billion customers, growing of sales, finally, won of services and Equally preeminent in
successfully to the also these of base As each wisely of will we and revenues, operating recurring grow drive continue areas, our we long our expenses invest scale profitable to term. over continue to execute growth in
and in share these earlier we value in the how at increase and data while wallet sevenfold our for and have Within our into a than past confident in XXXX We verticals we wallet look healthcare, of higher-margin doubled profit new ourselves, market mentioned are tangible from absorbing being share SKUs. proprietary rate of our customer leaves billion customer, the proprietary from incremental result additional In we hardgoods two impact what the growing less XX% executing XX% healthcare, has contribution opportunity. Let’s an total of us a and increased years, are three captured and translating of are truly SKU and our fact including powerful gross is I An from we comments, improved share brands. contribution growth Increased as calculate our new predecessors, reflect did direct delivering our wallet efforts we count, which efforts this more costs, point, over our that partners variable per profitability catalog one customers average year a large unlocking my ever. their cohort XXXX cohorts at extension, efforts this high-margin realized across profit results, customer accomplished results. years. gains nearly our annual discoverability past that which the Reiterating catalyst. as brand like is largest are $XX and initial the
launched a XX will these But full Connect we we as we in benefits and customer In XXXX, advertising in financial services refine XXXX, vital continue and Compounding. You will focused we customer months knowledge investing of beyond, and Vet well operate a healthcare as months. businesses. likely that in a for with few In space, support just and disciplined will remain accumulate improvements recall that recently ahead services two our were we services marketing. continue these the provide get as year in of our expanding Sustained these to on the LTV strategy live base. to
generates As and thereby completing effect efficiently reinvest bottom the convert active more we customers, both that growing into we then quickly in new drive profit acquiring our engaged into line customers flywheel and that base, line even growth. customers, customer turn, top the
expect investments may we way, leveraging SG&A. to Additionally, our continue the Along value strengthen to we choose to proposition. incremental employee make
offsetting from us shows investments over playbook that with and our time we began XXXX. implementing in However, technology these the efficiencies enhancements productivity
time, XXXX, of service confident long-term specifically, our are investments benefits, productivity $XX these necessary technology we is gains accelerate we More attract the same automation approximately made million over center XXXX that retain the directed productivity will in be and us At have our will drive wages network. bulk help to This higher the growth and investment and to we expect investments We from fulfillment will in in employee drive which profitability. in customer and members, engagement increase and and time. invest fulfillment team to team. higher see
velocity You we FC. catalog, that that, earlier FC. different opened fully first in may when recall limited XXXX, efficiency our began of high A opened October first realizing we style we month our a automated than
fiscal their operations. Given expect modest In their realize provided productivity launch FCs we to year us timing, full gains ramp XXXX. to only in benefit these from accelerated XXXX,
Kansas limited XXXX. We QX QX open second center facility catalog City, to XXXX also in another fulfillment and our in expect automated in
retrofits fulfillment centers. Additionally, will automation we select in at XXXX, begin
our also only apprised people variable SG&A are We investments the changes upcoming these We step to calls. function meaningfully keep drive to of these automation contribute they you and specific but and our timing effective events our not believe prudent, in of leverage. structure cost on the will potential in have
demonstrating XXXX positive big on adjusted taken EBITDA Finally, I we forward get having income meaningful that year to QX, fit costs. our and have our get of ability step would quarter path like in and first a profitability to and our of our fast to positive full in in first share net achieved
Going my but and is incredibly I trajectory us. all for an believe forward, will fluctuate year XXXX challenging we our may comments end was quarter-to-quarter, our margins positive. reiterating by profit unpredictable of and that clear
performed During made for partners. We a exceptionally wide pandemic. capitalized e-commerce parent and grew concerns of Chewy and of service well on of and to to this shift sustainable We channels. pets time, the customers business the offering operational millions strategic share significant our adopted proactively the progress. the market the pet consumers safety pandemic we by of delivering accelerated our level and new navigated Further, during and who kept
As base in and importantly, we ended dramatically XX% wallet us wellness by launching These a customers. health with size result, offerings million reach customers Perhaps the space. the we grew increased customers. year improve our ability increase our and with our additional market help and existing active most customer by share expanded our to services XX.X pet new
We are to will are call we our entering momentum, Mario. XXXX With ability and that, confident I with in deliver. turn over significant Mario? to the
