Overview

• Adjusted EPS of 33 cents beat the 14-cent consensus as net sales rose 8.6% to $3.10 billion, exceeding guidance.
• Full-year revenue outlook increased to $12.5–$12.6 billion, with Q3 guidance of $3.07–$3.10 billion in sales and 28–33 cents in adjusted EPS.
• Autoship revenue reached $2.58 billion, up 14.9%, accounting for 83% of quarterly net sales.
• Active customers grew 4.5% to 20.906 million, and net sales per active customer increased 4.6% to $591.
• Profitability improved with gross margin at 30.4% up 90 basis points, adjusted EBITDA up 26.5% to $183.3 million, and adjusted EBITDA margin rising to 5.9%.