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The shooting death of high-ranking UnitedHealth Group Inc. executive Brian Thompson has uncovered a deep anger among Americans who say the health insurance industry has too often failed to cover large medical bills and stood in the way of necessary care. “There’s clearly a sense of real discontent and distrust of the industry revealed in social media,” said Brian Klepper, principal of the Healthcare Performance Inc. consulting firm. “That’s not a healthy environment for an industry to prosper.” The reaction to the shooting is a wake-up call for sprawling companies that have seen their profits and stock prices rise over the past few years. Social media has given millions of Americans the means to amplify their long-simmering dissatisfaction with health insurers, and in the wake of Thompson’s death, X, Reddit, TikTok and other platforms lit up with hatred aimed at the industry. Kevin Farmer, a University of Florida orthopedics and sports medicine professor who posted on X about the shooting, said frustration with insurance is something doctors see every day. “I mean, what that can do to someone’s emotional thought process and reaction,” Farmer said. “They feel helpless.” The motive for Thompson’s killing remains unclear. New York police released images Thursday of a man they said is wanted in connection with the shooting and searched a Manhattan hostel where the person is believed to have stayed. No direct evidence has emerged to connect the shooting with any dispute over UnitedHealth’s business, though a shell casing and live ammunition round inscribed with “delay” and “depose” were recovered from the sidewalk at the midtown hotel where Thompson, 50, was attacked. The words echo complaints many American consumers have aired about long waits for insurers to pay medical bills and legal fights over claims. While the inscriptions suggest the shooting might be tied to an insurance dispute, investigators also have to consider whether they may be a distraction designed to divert from the true motive, said Joseph Giacalone, a former New York Police Department sergeant who’s now a professor at the John Jay College of Criminal Justice. “They are going to take everything seriously but have to have an open mind that this could be a potential ruse,” he said. Though insurers have rarely discussed it publicly, concerns that a frustrated policyholder could turn to violence have long percolated within the industry. Former health-insurance executive Michael Sherman said when he worked at Humana Inc. more than a decade ago the company had built “safe rooms” for executives at its Louisville, Kentucky, headquarters. Later, when he became the chief medical officer at Point32Health, he said the nonprofit insurer based in Massachusetts installed a panic button under his desk and hired private security for the executive suite. Still, Sherman said the idea that an insurance executive could be targeted by a killer was largely unthinkable. “People are shocked,” he said. “This is shaking people up and causing them to think more about the implications of these decisions, and perhaps the need for more security.” Humana declined to comment on its security procedures. Thompson’s killing should compel insurers to reexamine their security measures, from increasing surveillance of executives’ parking spots to adding panic buttons and bullet-resistant safe rooms to their executive suites, said Paul Sarnese, the former president of the International Association for Healthcare Security and Safety, an organization dedicated to protecting the health care industry. UnitedHealth had a security team at the New York Hilton Midtown hotel for its investor day, but it didn’t have anyone stationed outside where the executive was shot, according to a person familiar with the matter. The company didn’t comment on the security situation. Sarnese said threats against health care workers in general have increased since the COVID-19 pandemic, when many Americans grew disillusioned with recommendations about masking, isolating while sick and vaccines. Health insurers, who in the routine course of their business make millions of decisions every year that can have profound effects on people’s physical and financial well-being, are especially likely to elicit emotional responses from the public. A Gallup survey last fall asked respondents what they thought of the services provided by health insurers. Sixty-eight percent gave ratings of “only fair” or “poor.” Only 5% said it was “excellent.” “Imagine having a pre-existing condition and being denied your medical care,” Sarnese said. “You’re not only putting all this stress on someone who has a medical condition, but now you’re putting financial stress on their families. That stress can really push someone to threaten executives or act upon their threats.” The online vitriol generated by the Thompson shooting spilled into policy decisions by other insurers. Former Washington Post writer Taylor Lorenz generated an outcry after she posted on Bluesky Wednesday about a policy change from some units of Elevance Health Inc. that doctors said would limit coverage if operations ran long. “And people wonder why we want these executives dead,” she wrote. On Thursday, Elevance backtracked. “There has been significant widespread misinformation about an update to our anesthesia policy,” Elevance spokesperson Leslie Porras said. “As a result, we have decided to not proceed with this policy change. To be clear, it never was and never will be the policy of Anthem Blue Cross Blue Shield to not pay for medically necessary anesthesia services.” Several hours after the shooting on Wednesday, Sarah London, chief executive officer of health insurer Centene Corp. pulled out of a planned appearance at a conference sponsored by Forbes in New York. London canceled out of respect for Thompson, not because of security concerns, according to a person familiar with the matter. Centene’s investor day that was scheduled to be held in person next week was moved online. Centene declined to comment on its security procedures. Industry officials defended the role that insurers play in the health care system and said that the wave of hate that bubbled up on social media in the aftermath of Thompson’s killing was unwarranted. “The people in our industry are mission-driven professionals working to make coverage and care as affordable as possible and to help people navigate the complex medical system,” Mike Tuffin, president and CEO of trade group America’s Health Insurance Plans, said in a statement. “We condemn any suggestion that threats against our colleagues — or anyone else in our country — are ever acceptable.” UnitedHealth is one of the largest health care conglomerates in the U.S., housing the UnitedHealthcare insurance business that Thompson led, as well as vast operations focused on managing drug benefits and doctors’ offices. As a result of that broad reach, it has become a frequent target for criticism. The company was among a group of insurers that was slammed in a Senate report earlier this year for using automated tools to increase claim denials. The rate at which the company denied prior authorization for post-acute care more than doubled from 2020 to 2022, the Senate report found. In February, Bloomberg reported that the Department of Justice had opened an antitrust investigation into the company. Last month, the U.S. sued to block its $3.3 billion purchase of Amedisys Inc. over concerns the deal would harm competition in the market for home-health and hospice services. Also this year, the company’s Change Healthcare technology business was the target of hackers who gained access to the medical and other personal information of millions of Americans.By AAMER MADHANI, Associated Press WASHINGTON (AP) — A top White House official on Wednesday said at least eight U.S. telecom firms and dozens of nations have been impacted by a Chinese hacking campaign. Deputy national security adviser Anne Neuberger offered new details about the breadth of the sprawling Chinese hacking campaign that gave officials in Beijing access to private texts and phone conversations of an unknown number of Americans. Neuberger divulged the scope of the hack a day after the FBI and the Cybersecurity and Infrastructure Security Agency issued guidance intended to help root out the hackers and prevent similar cyberespionage in the future. White House officials cautioned that a number of telecommunication firms and countries impacted could still grow. Related Articles The U.S. believes that the hackers were able to gain access to communications of senior U.S. government officials and prominent political figures through the hack, Neuberger said. “We don’t believe any classified communications has been compromised,” Neuberger added during a call with reporters. She added that Biden has been briefed on the findings and that the White House “has made it a priority for the federal government to do everything it can to get to the bottom this.” The Chinese embassy in Washington on Tuesday rejected the accusations that it was responsible for the hack after the U.S. federal authorities issued new guidance. “The U.S. needs to stop its own cyberattacks against other countries and refrain from using cyber security to smear and slander China,” embassy spokesperson Liu Pengyu said. The embassy did not immediately respond to messages on Wednesday. Associated Press writer David Klepper contributed reporting.

In a somber tribute to a political stalwart, Congress President Mallikarjun Kharge and Leader of Opposition in Lok Sabha Rahul Gandhi paid their respects at the residence of former Prime Minister Manmohan Singh late Thursday night. The former PM, who led the country from 2004 to 2014, died at AIIMS in Delhi, sparking a wave of condolences across the nation. Singh was known for his economic reforms and pivotal role in shaping modern India. Kharge and Gandhi, who were attending a CWC meeting in Belagavi, rushed back to the capital upon receiving the heartbreaking news, underscoring Singh's immense impact on Indian politics. (With inputs from agencies.)LAKE FOREST, Ill. (AP) — Jaylon Johnson wasn't all that interested in discussing any bright spots or reasons to have hope for the Chicago Bears. Read this article for free: Already have an account? To continue reading, please subscribe: * LAKE FOREST, Ill. (AP) — Jaylon Johnson wasn't all that interested in discussing any bright spots or reasons to have hope for the Chicago Bears. Read unlimited articles for free today: Already have an account? LAKE FOREST, Ill. (AP) — Jaylon Johnson wasn’t all that interested in discussing any bright spots or reasons to have hope for the Chicago Bears. The star cornerback made his feelings clear. “I’ve been in slumps four, five years in a row now,” Johnson said Monday. “So, I mean at the end of the day, I don’t look for, ‘OK, what is going to be better in the future?’ ... It will be better when it’s better. So, right now, it’s not better. That’s all I can go off of.” The Bears (4-7) are last in the NFC North and have five straight losses after falling 30-27 to Minnesota in overtime. They wiped out an 11-point deficit in the final 22 seconds of regulation, only to come up short again when the Vikings’ Parker Romo kicked a 29-yard field goal. It was the third game during this skid that came down to the final play. The Bears also lost on a Hail Mary at Washington in Week 8 and had a game-ending field goal attempt by Cairo Santos blocked by Green Bay in Week 11. Players have openly questioned some of the coaching decisions in recent weeks. Offensive coordinator Shane Waldron got fired before the game against Green Bay. And coach Matt Eberflus’ game management came under more scrutiny against Minnesota. With the Bears trailing 17-10 in the third quarter, there was some confusion on a fourth-and-4 at the Vikings 27. Eberflus said he didn’t do a good enough job communicating on the previous play that they would go for it on fourth down. That led to a chaotic sequence in which Santos and long snapper Scott Daly ran onto the field, only to get waved off by a lineman. Quarterback Caleb Williams had to rush to get everyone lined up properly in order to avoid a delay of game. He wound up barking out the wrong play because he misheard the call from offensive coordinator Thomas Brown and threw an incomplete pass. Receiver DJ Moore said Eberflus had not addressed that play with the team. The Bears were scheduled to meet later Monday. “That moment was just like, like a ‘what is going on’ moment that we could have avoided,” he said. What’s working The passing game. Williams has clearly looked more comfortable in the two games since Brown replaced the fired Shane Waldron as offensive coordinator. The No. 1 draft pick followed up a solid performance against Green Bay by throwing for 340 yards and two touchdowns. It was his fourth straight turnover-free game and fifth in a row without an interception. What needs help Field goal protection. One week after his game-ending 46-yard field goal attempt against Green Bay got blocked, Santos had a 48-yarder rejected on his first try against Minnesota. It happened from the same area, in the middle of the line, when the Vikings’ Jerry Tillery knocked down the kick. “I just think it’s technique,” Eberflus said. “It’s getting your foot down, bracing up there, staying lower. ... We just have to do a better job there with that.” It was the third blocked field goal for Santos this year, the most for Chicago in a single season since it also had three blocked in 2012. He had a 43-yard try blocked in a win over Jacksonville on Oct. 13. Stock up Moore. The Bears have done a better job getting Moore involved under Brown. Moore caught seven passes for a season-high 106 yards and a touchdown against Minnesota. That gave him 14 receptions for 168 yards the past two games, compared to 13 for 104 yards over the previous four. Johnson’s 27-yard catch down the middle set up Santos’ tying field goal at the end of regulation. But it’s not just deep shots. The Bears are finding ways to get the ball in his hands, allowing him to turn short passes into bigger gains. He also had a 13-yard run. Stock down RB D’Andre Swift. After a string of solid outings, Swift had just 30 yards on 13 carries. To be fair, he has been dealing with a groin issue, and he was going against the NFL’s No. 1 run defense. Injuries The Bears reported no injuries during the game. Key number Winnipeg Jets Game Days On Winnipeg Jets game days, hockey writers Mike McIntyre and Ken Wiebe send news, notes and quotes from the morning skate, as well as injury updates and lineup decisions. Arrives a few hours prior to puck drop. 5-18 — The Bears’ record in one-possession games in nearly three seasons under Eberflus, including a 2-5 mark this year. They are 14-31 overall during Eberflus’ tenure. Next steps The schedule doesn’t get any easier, with a Thanksgiving matchup at NFC North leader Detroit. The Lions (10-1) have won nine straight since losing to Tampa Bay in Week 2. ___ AP NFL: https://apnews.com/hub/NFL Advertisement Advertisement

Chewy ( CHWY -0.45% ) Q3 2024 Earnings Call Dec 04, 2024 , 8:00 a.m. ET Contents: Prepared Remarks Questions and Answers Call Participants Prepared Remarks: Operator Hello, everyone, and welcome to the Chewy third quarter 2024 earnings call. My name is Emily, and I'll be coordinating your call today. [Operator instructions] I will now hand the call over to our host, Chewy CFO, David Reeder, to begin. David, please go ahead. David Reeder -- Chief Financial Officer Thank you for joining us on the call today to discuss our third quarter results for fiscal year 2024. Joining me today is Chewy CEO, Sumit Singh. Our earnings release, which was filed with the SEC earlier today, has been posted to the investor relations section of our website. In addition to the earnings release, a presentation summarizing our results is also available on our website at investor.chewy.com. On our call today, we will be making forward-looking statements, including statements concerning Chewy's financial results and performance, industry trends, strategic initiatives, share repurchase program, and the environment in which we operate. Such statements are considered forward-looking statements under the Private Securities Litigation Reform Act of 1995 and are subject to certain risks, uncertainties, and other factors described in the section titled Risk Factors in our quarterly report on Form 10-Q for the first quarter of fiscal year 2024 and in our other filings with the SEC, which could cause actual results to differ materially from those contemplated by our forward-looking statements. Reported results should not be considered 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 assume no obligation to update any forward-looking statements except as required by law. Also, during this call, we will discuss certain non-GAAP financial measures. Reconciliation of these non-GAAP items to the most directly comparable GAAP financial measures are provided on our investor relations website and in our earnings release. These non-GAAP measures are not intended as a substitute for GAAP results. Additionally, unless otherwise stated, all comparisons discussed on today's call will be against the comparable period of fiscal year 2023. Finally, this call in its entirety is being webcast on our investor relations website. A replay of the audio webcast will also be available on our investor relations website shortly. And with that, I'd like to turn the call over to Sumit. Sumit Singh -- Chief Executive Officer and Director Thank you, Dave, and thank you all for joining us on today's call. Our third quarter results continued to build on the positive momentum we observed in Q2. We delivered top-line growth exceeding the high end of our net sales guidance range, a sequential increase in active customers, continued adjusted EBITDA margin expansion, and robust free cash flow generation. These results underscore the durability of our business model and our team's relentless focus on high-quality execution and operational discipline. With that, let's dive into the details. Q3 net sales increased by approximately 5% to $2.88 billion. Both the strength of our flagship Autoship program and our customers' loyalty in nondiscretionary categories, particularly within consumables and health, anchored our Q3 net sales performance. Our Autoship program enables high visibility and predictability in our business and drives customer stickiness for Chewy. Autoship customer sales reached $2.3 billion in the quarter, representing 80% of Q3 net sales and a year-over-year increase of approximately 9%. Nondiscretionary categories, including consumables and healthcare products and services, accounted for 85% of Q3 net sales. Customers appreciate our comprehensive product catalog and our ongoing efforts to refresh assortment across food, treats, and hard goods. Over the last few quarters, we have increased our assortment across popular categories such as pet tech, vet food, and supplements, to name a few, adding several new premium brands, most of which launched exclusively on chewy.com. Additionally, we are continuously rolling out enhancements to our on-site and in-app experiences to ensure we are providing an even more enjoyable and convenient shopping journey for pet parents. Last quarter, I spoke about our efforts to redesign our mobile app and make the overall app experience more convenient for customers. In Q3, both unique customers who placed at least one order on the app and average app monthly active users or app MAU increased in the mid-teens range compared to Q3 of last year. I am excited by the strong engagement we continue to observe through our mobile app and the experience it brings to our customers. Continuing on the topic of customers, I am pleased to share that Q3 marked another quarter of sequential active customer growth, building on the momentum we established coming out of our second quarter. Our efforts to enhance shopping experiences, expand assortment, and various ongoing innovations, combined with our powerful marketing and CRM strategy, continue to drive outperformance, while macro normalization steadily continues in the background. We ended the third quarter with approximately 20.2 million active customers, up 160,000 sequentially. We now expect to end fiscal 2024 with active customers up modestly over last year, a trend which we expect to continue to strengthen in 2025. Turning to profitability. We generated $138 million of adjusted EBITDA in the quarter, representing a 4.8% margin and approximately 180 basis points of margin expansion year over year. Our Q3 adjusted EBITDA results reflect a continuation of our strong gross margin performance, our disciplined approach to cost management, and the ongoing benefits of fixed cost leverage as we scale. Our increasing profitability has enabled us to continue to return meaningful capital to shareholders, as reflected by the incremental $342 million we deployed to shareholders in the third quarter. Now, let me provide an update on some of Chewy's strategic initiatives and innovations. The Sponsored Ads business continues to perform well. And as expected, we remain on track to reach the low end of our previously stated long-term target range of 1% to 3% of net sales in fiscal 2024. We remain on track with our 1P technology migration and look forward to starting the new fiscal year fully converted to our 1P software platform. Moving to Chewy's healthcare offerings. I am proud of the progress our team has made this year across healthcare products and services, especially Chewy Vet Care or CVC. With the launch of Chewy Vet Care Clinics earlier this year, we not only unlocked the $25 billion vet services TAM opportunity, but we are also observing compelling complementarities across the entire Chewy ecosystem. We have six clinics opened today and expect to reach the high end of our previously stated target range of four to eight clinic openings in 2024 later this fiscal year. Performance across our clinic footprint is promising, and I'm happy to share that the early signs of success we spoke about last quarter have continued through Q3. The proportion of new-to-Chewy customers acquired through Chewy Vet Care continues to outperform relative to expectations. Additionally, broader ecosystem benefits, including cross-category shopping and post-clinic visit purchases on chewy.com, have strengthened since last quarter, indicating that our ability to seamlessly connect care with commerce is resonating with pet parents. I would also like to take a moment to talk about Chewy+, our paid membership program. Recall that we launched Chewy+ in summer 2024 to a representative sample of customers. Since launching the program, we have been carefully studying the shopping behavior of Chewy+ members and are tracking several key indicators of success, including the program's potential to accelerate wallet share consolidation and drive stronger cross-category engagement. Based on the data we have analyzed over the last several months, we are seeing that Chewy+ members consistently place more orders, have higher cross-category penetration and greater mobile app engagement relative to non-Chewy+ customers. Furthermore, we are seeing higher Autoship adoption rates from this early cohort of customers, signaling a potentially compelling flywheel effect off the Chewy+ program. While contribution to the overall enterprise remains immaterial, we are encouraged by these early results and look forward to introducing the program to our broader base of customers. Touching on Canada, where we completed a full year of operations in Q3. The Canadian business, while still relatively small and immaterial to the overall scale of Chewy, continues to improve across key metrics, including Autoship penetration, net sales growth, and profitability. Additionally, we remain focused on strengthening brand awareness in Canada and are excited by the brand partnership we recently signed with the Toronto Maple Leafs hockey team. We believe Chewy's passion for pets perfectly aligned with Torontonians' passion for the Maple Leafs, and we are bringing this to life with dynamic advertising and interactive fan moments during games at Scotiabank Arena. Lastly, I would like to acknowledge a notable milestone for Chewy with our recent inclusion in the S&P 400 index as of November 6th. We view our inclusion in this index as an endorsement of our performance, our enduring business, and our compelling growth opportunities ahead. In closing, I would like to thank all of our dedicated Chewy team members for their hard work and strong execution in the third quarter. We are now focused on executing through our final quarter of 2024 and are excited about the customer engagement we have seen thus far through this holiday season and look forward to ending fiscal year 2024 on a high note. With that, I will turn the call over to Dave. David Reeder -- Chief Financial Officer Thank you, Sumit. Third quarter net sales grew 4.8% year over year to 2.88 billion, exceeding the high end of the guidance range we provided last quarter. The pricing, promotion, and discount environment remained stable throughout the quarter. As such, year-over-year revenue growth was primarily driven by active customer growth and cross-category product penetration, resulting in continued customer wallet share gain. We ended the quarter with 20.2 million active customers, reflecting a sequential net increase of approximately 160,000 customers. Gross additions exceeded pre-COVID levels, and gross churn improved year over year. Within gross engross additions, both new customers and reactivations grew year over year in the quarter. We are encouraged by the positive momentum in active customers and expect these trends to continue through the balance of the year. Against the backdrop of a modestly improving pet industry and strong Chewy-specific execution, we now expect to end fiscal year 2024 with modest year-over-year active customer growth. Third quarter Autoship customer sales increased by 8.7% to 2.3 billion, outpacing total net sales growth in the quarter by approximately 390 basis points. Autoship customer sales as a percentage of total net sales increased by 290 basis points to 80%, a new company record. Additionally, we continued to grow share of wallet with Q3 net sales per active customer, or NSPAC, reaching $567. Moving to profitability. We reported third quarter gross margin of 29.3%, representing 80 basis points of margin expansion year over year. Our growing Sponsored Ads business was the largest driver of gross margin improvement in the quarter, followed by product mix shift into premium categories, including consumables and pharmacy. Additionally, promotional activity in the third quarter was in line with our expectations, and the promotional environment to date in the fourth quarter remains rational. Shifting to operating expenses. Please note that my discussion of SG&A exclude share-based compensation expense and related taxes. Third quarter SG&A totaled 546 million, or 19% of net sales, representing 90 basis points of improvement on a year-over-year basis. SG&A leverage was primarily driven by continued discipline and efficiency with respect to corporate payroll, fulfillment, and other at scale efficiency benefits. Third quarter advertising and marketing expense was 191.8 million or 6.7% of net sales. I would note that we expect advertising and marketing expenses to come in at the high end of our previously stated range of 6% to 7% of net sales for the full year. This is primarily due to the timing of certain marketing campaigns in Q4. Third quarter adjusted net income was 84.9 million, representing a 34% increase year over year. Net income for the quarter was 3.9 million, which translated into $0.01 earnings per share on both a basic and diluted basis. Finally, we reported adjusted EBITDA of 138.2 million, representing a 4.8% adjusted EBITDA margin and 180 basis points of year-over-year margin expansion, driven by the improvements in gross margin and SG&A described earlier. We reported free cash flow of 151.8 million in the third quarter, reflecting 183.5 million of net cash provided by operating activities and 31.7 million of capital expenditures. Our third quarter trailing 12-month free cash flow was over 360 million and demonstrates our ability to generate increasing levels of free cash flow while continuing to invest in our growth initiatives and returning significant capital to shareholders. I'd now like to provide an update on our share repurchase activity completed in the quarter. In September, concurrently with a 500 million underwritten secondary offering of Class A common stock by BC Partners, we repurchased approximately 10.2 million shares of Class A common stock directly from BC Partners for an aggregate repurchase price of 300 million. This repurchase transaction allowed us to continue to reduce the ownership position of our largest shareholder and was executed separately from our existing $500 million share repurchase program. Additionally, during the quarter, we repurchased approximately 1.6 million shares of Class A common stock, spending approximately 42.4 million under our 500 million share repurchase program. At the end of the quarter, we had approximately 424.8 million of remaining capacity under the program for future repurchases. Collectively, the company has repurchased and retired a total of 30.7 million shares year to date. Our ability to generate increasing levels of profitability and free cash flow will continue to enable us to invest in our business and return meaningful capital to shareholders. We ended the quarter with approximately 508 million in cash, cash equivalents, and marketable securities, and we remain debt-free, with an overall liquidity position of approximately 1.3 billion. With that, I'd like to turn to our fourth quarter and updated full year 2024 guidance. We anticipate fourth quarter net sales of between 3.18 billion and 3.20 billion, or approximately 13% year-over-year growth, which reflects the full impact of the 53rd week, and we are narrowing and raising our full year 2024 net sales outlook to be between 11.79 billion and 11.81 billion or approximately 6% year-over-year growth. This range includes the impact of a 53-week 2024 fiscal year. And as previously noted, the 53rd week will be fully reflected in the fourth quarter of 2024. We are raising our full year 2024 adjusted EBITDA margin guidance to a range of 4.6% to 4.8%. The midpoint of our full year adjusted EBITDA margin guidance range indicates approximately 140 basis points of year-over-year margin expansion and implies approximately 3.4% adjusted EBITDA margin for the fourth quarter. Consistent with our comments last quarter pertaining to the quarterly progression of 2024 adjusted EBITDA margin, we expect Q4 adjusted EBITDA margin to decline sequentially due to typical seasonality and the timing of certain investments, primarily pertaining to marketing campaigns. Given the results of our previous three quarters, we anticipate 2024 capital expenditures to come in at the low end of our previously stated range of 1.5% to 2% of net sales, and we expect free cash flow conversion to remain above 80% for the full year. Finally, we expect basic shares outstanding at fiscal 2024 year-end to be approximately 415 million. This incorporates the nearly 31 million shares that we have repurchased and retired year to date and does not incorporate any potential future share repurchases. In closing, our third quarter results reflect another quarter of strong execution. I want to thank our incredible Chewy team members for their collective efforts as we continue to execute against our strategic priorities to deliver long-term profitable growth. With that, I will turn the call over to the operator for questions. Questions & Answers: Operator Thank you. We will now begin the question-and-answer session. [Operator instructions] Our first question today comes from the line of Nathan Feather with Morgan Stanley. Please go ahead. Nathan Feather -- Analyst Thanks for the question and congrats on the strong results. Really encouraging to see the continued momentum. Active customer growth continues to accelerate. Can you double-click on what you're seeing in overall pet ownership trends and how we should think about the relative contribution to customer growth as compared to some of the idiosyncratic initiatives you've been working on? And then given the expectation for customer growth to improve further in '25, how should we think about the key puts and takes you're considering for growth in the year? Thank you. Sumit Singh -- Chief Executive Officer and Director Hey, Nathan. This is Sumit. I'll start and Dave will jump in wherever he sees appropriate. So, in terms of household formation trends, I think you started with that, we continue to see signs of industry normalization. Pricing remains stable. Inflation continues to move toward a more normalized level. In fact, we saw no benefit of pricing, as we mentioned on the earnings call, as we move through Q3. Regarding pet household formation, of course, there's no single truth -- source of truth for this data. Our triangulation, you know, continues to tell us that latest adoption and relinquishment trends are both trending in a better direction. We believe year-over-year adoption growth was in the high single-digit to low double-digit ranges, and relinquishment were down low single digits. So, overall, we observed a return to positive net adoptions in cycle of Q3 from an external point of view. In terms of -- let me see, you had another question here. Double-click and do about expectation for active customer growth in '25 and puts and takes. So, I mean, there's a lot going on. Ultimately, we believe -- you know, as I mentioned last quarter, the active customer growth that we are driving now -- you know, two times now as a trend -- is largely due to our own efforts, and the industry continues to normalize in the background, which is, of course, a stabilizing factor that is very good to see. On our side, you know, enhancing on-site and mobile experiences, expanding assortment, performance on the CRM strategy, and all of that is sort of what's working in conjunction. As we move into '25, what has really started to work for us is our focus on connecting the marketing funnel to expanded audiences, and driving that funnel exposure is enabling our teams to find both the right level of efficiency, as well as the flexibility to move spend up and down the funnel to capture both share of voice and demand. And when we bring them to the site, we are able to convert them effectively with the previous efforts that I've talked about around improvement of site experience, customer choices, assortment, other innovations, etc. So, our '25 strategy is very much in line with, you know, operating the playbook that we've uncovered and strengthened for ourselves in '24. Another data point that I just want to draw your attention to, more of a recall from last quarter, is we said, you know, we have an improved ability to identify and segment customers and target them, you know, to drive improved second purchase rates, Autoship signups, mobile app engagement, etc., etc. And so, on the background, you know, we've now sort of played this playbook for at least two quarters. We're going to rinse and repeat in Q4 and 2025, strengthening our channel and share performance in the market. Nathan Feather -- Analyst Great. Thank you. David Reeder -- Chief Financial Officer Thank you, Nate. Operator The next question comes from Curtis Nagle with Bank of America Merrill Lynch. Curtis, please go ahead. Curtis Nagle -- Analyst Awesome. Thanks very much for taking the question. So, I want to focus a bit on the 4Q guidance and maybe specifically on the comments in terms of the advertising and marketing spend. Just in terms of context, you know, at the high end of the range, you know, around 7% for the year, it implies like a really big dollar increase, right, certainly relative to the other quarters. Like, no relative leverage from the extra week. So, you know, I guess, just kind of digging into that, you know, what does this spend pertain to? Looks to me like implied like $40 million to $50 million year over year. Is that correct? And, you know, are there specific products or customers you're targeting? Is it one-time? Just, you know, kind of dig into that and kind of how we should specifically, you know, think about that increase and whether you're just applying some conservatism or not. David Reeder -- Chief Financial Officer Good morning and thanks for the question. I'll take this one, and then, Sumit, if you want to build upon any of it, you know, let me know. And I'll build upon Sumit's comments about active customers. So, in the third quarter, when you think about the elements that go into gross additions, you've got new customers added, you've got reactivations, and then, of course, you have churn. And we actually saw improvement across all three of those metrics in the third quarter on a year-over-year basis. And so, we're entering the fourth quarter with some momentum on the activities that we're driving across those three elements I mentioned. We're entering the fourth quarter with the continuation of what we believe is a normalizing industry, as we previously referenced with moderating inflation, as well as the shelter data that we've mentioned previously as well, which has continued in the third quarter. So, with that momentum going into the fourth quarter, there's a couple of elements to consider. Number one, you typically have a little bit higher elevated advertising and marketing in the fourth quarter given the holiday season, as well as the timing of certain campaigns. And then building on that, we see an opportunity in the industry in the fourth quarter where we believe that we want to invest and lean in to the fourth quarter such that we can continue to build on what we believe are some improvement in the industry and then continue that, of course, into 2025. So, you know, net-net, you take a step back, you think about what we've told you for the year in terms of our guidance, active customer growth, flat to down in the first half, flat to up in the second half, ending flat. We've moved up that guidance. We've pulled in that guidance. And we see an opportunity to invest in the fourth quarter in advertising and marketing, and we're doing that. For the full year, we'll be at the high end of the 6% to 7% range. And as you mentioned, to get to the high end of that 6% to 7% range for the year, that would imply being above 7% specifically for the fourth quarter. Sumit. Sumit Singh -- Chief Executive Officer and Director Yeah. Curtis, I would just like to add more of a reminder on the conversations that we've had on this call in the past, which is, you know, we spend based on the ROI and the LTV potential that we're seeing in the current cohort of customers that we pick up from market and the existing customer base that we're developing share of wallet on. So, in the past, as you know, we've swung the marketing spend all the way to the left, you know, down 70 basis points, 80 basis points from our average. And now, we're picking that back up. Why didn't we spend in the past and why are we spending now? Well, because we didn't see the ROI in the past and we are now. The cohorts that were acquiring, the efficiencies that we're gaining based on the full funnel audience expansions that I talked about are really compelling and behooves us to be able to invest to continue this trend, as well as solidify growth for year 2025 and beyond. If you kind of see something -- let me share some of the data points that we're seeing. You know, the -- you know, our orientation is three-fourths of the customers that we're picking up had at least one SKU from a repeatable category. And that's an encouraging trend because it promotes Autoship growth and builds the layer cake that then sort of compels and, you know, spins the flywheel in a more efficient manner. We're seeing, you know, these new customers' reorder rates and settlement rates improving, you know, as our engagements with these consumable-type categories. You know, when you look at year-to-date '24 new customer cohorts, in terms of year-over-year reorder rates, in the first few periods of post-acquisition, you know, we're running roughly 300 basis points to 500 basis points higher than the three months averages. So, these are just some data points on the background that allows us to sort of study and, you know, increase or decrease the values of propensity you know, modeling and, therefore, go out and invest if we see the returns. That's what we're doing right now. Curtis Nagle -- Analyst OK. And then just -- that makes total sense. Just a quick follow-up. The points you made in answering Nathan's question on the adoptions were really interesting. I think you said, you know, up on a gross add basis high singles to low double, relinquishment was down low singles. So, you know, net, a pretty good number. What -- how did that compare to 2Q? Just trying to, you know, sort of size it in terms of relative improvement. Sumit Singh -- Chief Executive Officer and Director It's positive by -- I think the margins extended by low to mid-single-digit ranges relative to Q2. Curtis Nagle -- Analyst OK. Awesome. Appreciate it. Thank you. Sumit Singh -- Chief Executive Officer and Director Sure. Operator The next question comes from Doug Anmuth with J.P. Morgan. Please go ahead. Doug Anmuth -- Analyst Great. Thanks for taking the questions. Two, if I could. First, just on vet clinics, looks like you're on track to the eight locations by year-end. Can you talk more about what you've learned this year and how that informs your '25 expansion plans and the investments that may be required then? And then, Sumit, if you could also perhaps give us an update on automation, just kind of how you're tracking relative to the 70% to 80% kind of long-term percentage of volume that you've talked about over time? Thanks. David Reeder -- Chief Financial Officer Yeah. Sumit Singh -- Chief Executive Officer and Director You take the first. I'll take -- David Reeder -- Chief Financial Officer Yeah. So, with respect to the vet clinics, you know, as we talked about, we were planning to roll out four to eight vet clinics this year. We're going to be at the high end of that range. The positive trends that we've seen on vet clinics have continued. Some of those positive metrics has been, you know, the operational utilization of those clinics, it's been high. The customer engagement from those clinics and the corresponding customer service levels have been high. The net promoter kind of score around those clinics and the service level, high. The new customer cross-category penetration, new customers to Chewy that come in through vet clinics and then their propensity to go to chewy.com and then shop online at chewy.com, also high. In fact, more than half of those new customers, consistent with last quarter -- actually an improvement from last quarter, are leaving the vet clinic, new customer to Chewy, and then going online and also shopping at chewy.com. So, all the metrics across the vet clinics are trending positive. I'll leave the 2025 guidance for 2025. But I would just tell you that we've been very encouraged by our engagement with customers. We're encouraged by the size of the TAM, roughly 25 billion, that we've opened up through these vet clinics, and we're excited about continuing to grow our presence in this space. Sumit, anything that you would build on there? Sumit Singh -- Chief Executive Officer and Director On the automation, no, that's perfect. Thank you. On the automation side, Doug, we continue to trend upwards. A little less than half of our volume is now shipping through our 2G fulfillment centers and, you know, touching some sort of automation in the network. And that, combined with the improved, you know, supply chain tooling that we have, you know, is allowing us to execute through a really strong peak. And we continue to gain those efficiencies and flow through the bottom line, as you can see in the opex scaling that Dave talked about in the -- on the script. Happy to dive deeper in any area, if you like. David Reeder -- Chief Financial Officer And just to build on that comment and using some data points from the third quarter, given the efficiencies that you've mentioned, we had an improvement on the variable fulfillment side, we had improvement on the fixed fulfillment side. In other words, we got more fixed cost absorption through those fulfillment centers. And orders every quarter this year, year over year, so Q1, Q2, Q3, on a year-over-year basis, orders are up across all those quarters and in total year to date. In fact, we had our highest order period during this most recent peak -- holiday peak cycle over the last week or so. And so, the team is executing very well, and the automation that's been referenced here is a big contributor to that, both in terms of output, as well as efficiency and productivity. Did you have a follow-up, Doug? Doug Anmuth -- Analyst That's great. Thank you, both. Appreciate it. No. All good. Thank you. David Reeder -- Chief Financial Officer Thanks. Operator The next question comes from David Bellinger with Mizuho. David, please go ahead. David Bellinger -- Analyst Hey. Good morning. Thanks for the questions. First one, I wanted to revisit the app, which I think you mentioned last quarter was around 20% of revenues. Is there any update on how quickly that percentage could ramp up? How fast can we get to 30% or 40%? And then secondly, how should we think about the P&L impact of that? Can you simply bypass marketing spend and sort of get more leverage on the ad expense line by getting more volumes through your app? Sumit Singh -- Chief Executive Officer and Director Hi, David. So, we're -- this is a priority for us, and we are essentially ramping up our efforts very quickly to be able to push this volume. I would, you know, consider this not a few quarters of effort, but perhaps a couple of years of efforts to get to sort of market standard rates of, you know, above 40%, 45% of our -- so doubling kind of the volume that is moving through the app. But the progress that we are making on a quarter-over-quarter basis is something that we like. And of course, yes, we like it for the fact that it's a closed-loop ecosystem. It allows us to collect 1P data, market on a 1P basis, you know, take advantage of the direct traffic, stay in touch with customers, you know, who are really more engaged, and capitalize on the trends that we see in the app, which are highly encouraging from an overall conversion of revenue into profitability point of view. For example, you know, Autoship engagement rates are higher in the app. AOVs are higher in the app. Retention rates in apps are several hundred basis points higher than customers who engage with us over the web or desktop. You know, the cross-category attachment that we see go through the app is higher. So, all in all, it's just not only a more productive experience, it's also a more enjoyable and personalized experience that allows us to build a quality of relationship that we believe will be even stronger, alongside the P&L benefits that come with it. We'll size the benefits side, I think, in 2025, so I'm taking that question to note and we'll come back in 2025 and size it up. David Bellinger -- Analyst All right. Perfect. We'll come back on that one. And then just a follow-up, in your 10-Q filing, it looked like there was some new language around a project on the finance IT side. Not meaningful from a capital investment perspective. But can you elaborate on the SG&A portion, how much will that detract in 2025 and are there any deficiencies within the system that this is correcting? David Reeder -- Chief Financial Officer No, there are no deficiencies in the system that this is correcting. This is a new capability for us. So, I think it's -- you should think about this as, you know, the migration of some of our planning engines to a more comprehensive online suite. And by being able to do that, which at no material impact really to the P&L, by being able to do that, we're able to, you know, get more granularity with respect to all of our operations. And we're also going to be able to apply some AI to those same operations to get some automated intelligence and reporting out of the system in a more comprehensive way. David Bellinger -- Analyst Perfect. Thank you, both. David Reeder -- Chief Financial Officer Thanks, David. Operator The next question comes from Steven Zaccone with Citigroup. Steven, please go ahead. Steve Zaccone -- Analyst Hi. Good morning. Thanks very much for taking my question. First question I had was just on pricing. Sumit, you said there was no benefit from pricing in the third quarter. How do you see that playing out in 4Q, and then any preliminary views on 2025? It seems like the industry overall has been flattish for some time. So, your thoughts on maybe what it looks like next year will be helpful. David Reeder -- Chief Financial Officer Yeah. So, hi, Steve. This is David. I'll take this one, and then, Sumit, if you want to build on it, chime in. With respect to pricing in third quarter, really no material benefit nor detriment in the third quarter with respect to pricing. We had goodness on the gross margin line, largely driven by Sponsored Ads and product mix. And then, of course, that flowed all the way through the P&L, ultimately, to give us a pretty sizable EBITDA beat for the quarter on a year-over-year basis, roughly half driven by gross margin and half driven by leverage through the remainder of the P&L. But really, no impact either way from pricing. With respect to fourth quarter, you know, you typically do have some pricing and discounting in the fourth quarter related to the holiday season. We fully baked that into our guidance for the fourth quarter. But again, no material kind of impact from inflation nor deflation, which the inflation piece is obviously we had seen in prior years and in prior periods, but really no meaningful impact really throughout 2024. We had a little bit in the first quarter. Second quarter, it moderated significantly. Third quarter, relatively nonexistent. Fourth quarter, expecting the same other than the traditional seasonality. And that's how we're kind of expecting rolling into 2025. We're expecting those trends to largely continue. Sumit Singh -- Chief Executive Officer and Director Yeah. The overall environment, Steven, the market remains very rational with, of course, some seasonal spikes that you would expect as we played through the Cyber Week last week, which was a very good week for us. You know, if you remember our comments from the beginning of this year, the composition of revenue has shifted from, you know, part pricing, part unit growth or structural growth coming into Q1 of this year to -- much more weighted toward structural growth as we exit this year. You know, we are not seeing deflation happen in the category. The category that, of course, is more elastic right now as we move to Q4, particularly Cyber, is more on the hard goods and discretionary side, but you would expect that, you know, as the industry normalizes and we push volumes through this seasonal holiday peak season. But outside of that, you should expect '25 -- you know, if you recall our long-term growth algorithm, the revenue is a function of active customer growth in the low to mid-single-digit and NSPAC growth in the mid to high single digit, and there's a benefit of roughly 2% to 2.5% of pricing built in when the industry normalizes. And that long-term growth algorithm, we expect, will come true as the industry continues to normalize and we move out of '24 into '25 and '26. Steve Zaccone -- Analyst OK. That's very helpful. The follow-up I had is just in the context of raising the customer count outlook and then the commentary about that strengthening in 2025, how much of that is driven by the industry data points getting a little bit better, like you mentioned, pet adoptions, versus your own idiosyncratic efforts, you know, talking about marketing and stuff of that nature? Sumit Singh -- Chief Executive Officer and Director Yeah, it's hard to put a ratio on it, but we believe a majority of this change that we have seen is driven by internal efforts. And so, we are bullish, you know, that we should get an incremental tailwind, you know, when the industry fully normalizes. Currently, we are not taking that into account because we'd like to be -- we'd like that to sit on top. And so, present our -- presently, our comments around, you know, us growing active customer is on the back of efforts that we are internally driving and seeing success with. Steve Zaccone -- Analyst Very helpful. Thanks for the questions. Operator The next question comes from Rupesh Parikh with Oppenheimer. Please go ahead. Rupesh Parikh -- Analyst Good morning and thanks for taking my question. Also, congrats on this quarter. So, just going back to the hard goods category, we'd love to get more color in terms of what you saw during the quarter, expectations going forward. And then from a tariff perspective, does any exposure on the tariff front? Thank you. Sumit Singh -- Chief Executive Officer and Director So, I'll take the first part. Dave will chime in on the second one. So, we're -- as you can see -- I mean, you know, hard goods continues to improve, and it did in Q3 as well. And so, on the backdrop, it's really good to kind of recognize the industry normalizing. You know, we are viewing the steady improvement in hard goods performance as a result of both our efforts that I've talked about and indicative of that industry stabilization. Specific to our efforts, it includes expanding assortment across several merch classes. We've been very focused on bringing in, you know, high value-added assortment onto the platform. And our suppliers and vendors are very excited to partner with us there. We're focused on upgrading site experience to improve padding, discovery, and conversion, and we are marrying that up with thoughtful campaign execution. And so, these efforts -- you know, the -- so we believe the work done by our teams is paying off. And I also want to note that we will only fully benefit, you know, from this when we start to see a more fulsome recovery in discretionary purchasing. But we're happy with the results so far. David Reeder -- Chief Financial Officer And building on that, like, we're excited about our goods growing two quarters in a row now on a year-over-year basis. So, both second quarter this year and third quarter of this year have now grown on a year-over-year basis. We're pretty excited about that growth. And we're also excited about the early trends that we've seen here in fourth quarter. So, don't want to, you know, guide by a product category, but certainly we feel good about hard goods, where we stand today in the fourth quarter. With respect to the tariff question that you mentioned, you know, we have a very small reliance and presence on China specifically. We do source some hard goods from China, primarily related to some of our hard goods. But the vast, vast majority of our net sales at Chewy are, you know, pretty much domestic -- domestically sourced. So, our reliance on the region in our -- the impact of any potential tariff is relatively low on Chewy. Rupesh Parikh -- Analyst Great. Thank you. I'll pass it along. Operator The next question comes from Mark Mahaney with Evercore ISI. Please go ahead, Mark. Mark Mahaney -- Analyst Thanks. Two questions, please. This active customer growth, can you tell how much of that is from reactivated customers, customers you've had in the past who churned off for whatever reasons and have come back? And if so, any color on what those reasons are? And then secondly, it sounds like competitive intensity is relatively moderate given your comments on pricing. But other than pricing, is there anything else you're seeing notable in the competitive landscape? Thank you. Sumit Singh -- Chief Executive Officer and Director Hi, Mark. A greater number of customers were from net new customers that we acquired relative to the reactivated customers that we count toward gross adds. The other encouraging factor that we saw this time was, you know, the cohort stabilization that we've been talking about. So, churn stabilized, as we would expect, which was Dave's earlier comment on all three indicators were positive: net new, reactivated, as well as lower churn. But between the gross add, the portion of net new customers on an absolute basis absolutely exceeded reactivations. So, we were happy to see that, of course, and we would want that. And then if you combine that with some of the results that I shared around how these cohorts are engaging in terms of second purchase rates, etc., that is encouraging to see. On the retention side, you know, we're tracking settled orders, which is a metric that we, you know, developed as we came out of the COVID time frame so to be really able to see third order settlement rates so that we're not calling early success or early, you know, wins on these customer cohorts. And we're seeing third order customer settlement rates also improve from cohorts that we've acquired from P5 of this year and before that. So, all encouraging signs. Competitive intensity, you're right. It seems relatively moderate. Pricing environment is rational. And overall, you know, we're playing a pretty strong playbook, continuing to differentiate ourselves, both in terms of the basics of, you know, the category around price and convenience and assortment, but also in bringing new innovations to life. Super excited about Chewy+, super excited about the app initiative. Canada is ramping well. Sponsored Ads are ramping well, too. Nothing else to report. Mark Mahaney -- Analyst OK. Thank you, Sumit. Sumit Singh -- Chief Executive Officer and Director Sure. Operator The next question comes from Shweta Khajuria with Wolfe Research. Please go ahead. Shweta Khajuria -- Analyst Thank you so much for taking my questions. Let me try two, please. One is could you please talk to some of the marketing channels that are working really well for you, were a positive surprise or have been a positive surprise for you over the past couple of quarters as you lean into different channels and seeing better returns? That's one. And then second is could you please talk about trends you saw quarter to date, so through October, November, December, and how the trend did versus your internal expectations? Thanks a lot. Sumit Singh -- Chief Executive Officer and Director Sure. So, I won't fully satisfy your curiosity on specific marketing channels working for us. I would reorient us back to the comment I made at the start of the call, which, if you were trying to draw, hey, what's different, I would focus on, you know, the comment around really connecting the marketing funnel to expanded audiences and driving that full funnel exposure. That has been the most significant change that we've made over the last few quarters. Combine that with our ability to target those customers when they arrive on our platforms and drive to better conversion I believe is a powerful recipe, which we are continuing to perfect. So, more room to go there. But we're excited about what we are seeing so far. So, I would likely just stick with that. Any color on quarter-to-date trends? We're happy with quarter-to-date performance. Our -- we just wrapped up our Cyber Week. And by all measure of the word, I would classify peak holiday event performance to be successful. We had a thoughtful and curated plan, comprised of great assortment, offers, experience, and marketing strategy. And customers, in return, engaged robustly with the visits and spending exceeding our expectations, driving some of the biggest net sales day in Chewy history. So, we're -- and as you heard from Dave in the prepared remarks, we're increasing our net sales guidance range for the year. And while we did not specifically call out the last few weeks that we've played through, this increase is a result of the strength that we are currently seeing in the engine. Anything to add? David Reeder -- Chief Financial Officer Yeah. If I could build on that with a few softer points here that don't necessarily show up in the P&L but they certainly give us a good brand umbrella, number one, Chewy Claus. I'll call that out, especially this time of year. And it's a program where pets submit their Santa wish list. And it's gotten quite a bit of traction in prior years. It's gotten even more traction this year. It's not part of a, you know, paid marketing program, but it is a program that's organic and it's trending. And it's a program that when people associate pets, pet parents, the humanization of pets in an emotive category like this, it is an organic trend that gets a lot of play this time of year, and it's a program that we love to run. And then finally, I'd be remiss if I didn't just point out the wow experience that our customer service provides every day and the brand uplift and emotive attachment to Chewy that that type of program does. Sumit Singh -- Chief Executive Officer and Director Shweta, if the CFO is talking about it, the Chewy Claus program must really be working there. Shweta Khajuria -- Analyst Thank you, Sumit. Thanks, Dave. Sumit Singh -- Chief Executive Officer and Director Thanks. Operator We have time for one more question. And so, our final question today comes from Anna Andreeva with Piper Sandler. Anna, please go ahead. Anna Andreeva -- Analyst Great. Thanks so much. Happy to have made it. And congrats. Nice results. Two questions from us. I wanted to follow up on hard goods. Sumit, just remind us what's the size of your own brands business within that. Are you starting to see growth there, and should that continue into next year? And is own brands still a higher-margin category for Chewy? And secondly, I guess, to date, FC automation has been a pretty big story here, and you quantified that benefit in the 10-Q, to opex. Can you remind us how many FCs are automated now? What's the benefit and opex savings you see per FC? And how many do you still left to automate ahead into '25 or beyond? Thank you so much. David Reeder -- Chief Financial Officer Sure. Let me start perhaps with hard goods. And again, if you go into the 10-Q, you'll see that we report on hard goods, as I mentioned earlier, after several kind of quarters where we had experienced decline in the past. We have had two consecutive quarters now with growth in hard goods year over year. So, the second quarter, we grew year over year. The third quarter, we've grown year over year again. And in fact, we've grown faster than we did in the second quarter. And while we don't guide by, you know, some -- a product line or category, we did -- we have experienced some good trends in hard goods here in the fourth quarter. So, we're quite pleased from that perspective. With regards to our own private brands, either within hard goods or other categories, you know, we don't comment extensively on that. I would say, in general, private brands for us has been stable. We have several initiatives that -- where we are expanding assortment across both consumables, as well as hard goods. Most of those initiatives are future benefits and not really reflected in the P&L that we've produced for third quarter or that were guiding for fourth quarter. So, those benefits are yet to come. But hard goods, in general, up two consecutive quarters, trending well for fourth quarter; and then private brands within hard goods, continuing to improve assortment and selection. Sumit. Sumit Singh -- Chief Executive Officer and Director And I would just say that even though, you know, the relative stability is absolutely right, you know, if you recall, this is an area of opportunity that we recognized as a strategic pillar. We want to get net sales penetration up to mid-teens level. And at that scale, we expect private brands to contribute, you know, up to 500 basis points of higher gross margin to the core business. For hard goods, you know, we've mentioned in the past that penetration for our private brands is in the mid-teens to high-teens level. It fluctuates, you know, in that range across the year, and we are relatively stable in that penetration. In terms of automation, six fulfillment centers are currently automated. What I would recall -- what I would draw your attention to is, you know, at Capital Markets Day, we said we can, you know, continue to automate across our network and reach or touch over 70% of volume in one way, shape, or form to push through these improved processes. And if you look at just the FC itself, you know, we have said it drives improvement to the tune of up to 50% in productivity, 30% in volume per square foot, and up to 60% improvements in ergonomics and safety. And those results are pretty true even now. Operator Those are all the questions we have time for today. [Operator instructions] Duration: 0 minutes Call participants: David Reeder -- Chief Financial Officer Sumit Singh -- Chief Executive Officer and Director Nathan Feather -- Analyst Curtis Nagle -- Analyst Doug Anmuth -- Analyst David Bellinger -- Analyst Steve Zaccone -- Analyst Rupesh Parikh -- Analyst Mark Mahaney -- Analyst Shweta Khajuria -- Analyst Anna Andreeva -- Analyst More CHWY analysis All earnings call transcriptsTrump Plans To Use Impoundment To Cut Spending - What Is It?

NoneBy Sebastian Kanally, Times Chronicle Are outdoor water meter pits the best option, should there be tiered billing or non-tiered billing – t hese were just some of the questions that resulted in the decision around implementing universal water metering becoming deferred again. The Regional District of the Okanagan-Similkameen (RDOS) board of directors is facing the decision of how to proceed with a universal water metering plan and accepting an invitation to participate in a universal metering pilot project commencing in early 2025. After a short presentation to the board, Shelley Fiorito, project coordinator of public works and Liisa Bloomfield, senior manager of utilities took on a barrage of questions from the board that ultimately led to the decision to defer until Febuary at the latest. While the board did pass the motion to accept the invitation to participate in the pilot project, there were too many unanswered questions for the board to make a decision on implementing the plan across all RDOS water systems. Jason Weibe, mayor of Keremeos for example is in favour of universal metering but disagreed with the proposed tiered billing structure which was built into the recommendation. He explained it “disproportionally affects people who can least afford it, if you have means then doubling it really doesn’t mean much, but it does for low-income families and different folks who might have more use of the water. We don’t pay more at the pump for gasoline. The punishment in itself is that if you need more fuel you pay more but it’s the same price.” Weibe’s position did not get explicit support from other directors but did bloom into a wider conversation about pricing. Fiorito tried to explain that they were not intending the structure to be punitive, “the intention is to set the tier so that it’s mimicking and very close to what they are paying currently.” Rick Knodel, director of Area “C” rural Oliver, expressed some concerns about farms and the unexpected impact of water metering. “We have more and more farm areas that are becoming a part of metered systems and that was brought up at Union of BC Municipalities (UBCM) as a very serious situation because now we are using treated water on farmland. “Of course, there is an expense to that and there is also the potential for increasing fire risk by basically getting the cost to a point where people who are on the fringe, the actual interface of the community, are pulling back on their watering and creating a higher risk area.” Fiorito tried to ease the concerns by saying “as far as the AG (agricultural) properties, when the AG parcels are metered, if they are designated as a farm use under the various acts, then there would be a different rate, there would be an irrigation rate for those. Usually, we would have the domestic, residential, then the agriculture rates.” A large factor for the RDOS wanting to make the change to implement universal water metering is that they claim it’s proven to reduce water consumption and they want to acquire data about how effective setting water restrictions actually are. “Metering helps give us that quantifiable value that tells us how successful our water restriction application is,” Fiorito said. Mayor of Oliver, Mayor Johansen commented that “we haven’t found that they are so great at reducing water consumption . . . We got our report last council meeting, and it was interesting that our water consumption, even though we went to stage one, watering every other day, our consumption never dropped. People are just watering twice as much every other day.” Director of Area “E” Naramata, Adrienne Fedrigo, did not want to support the project until RDOS staff discussed the project with the Naramata Water Committee and how it would impact their community. The directors still had a lot of varied questions and concerns with how the project would actually roll out and therefore could not make a motion at their meeting. Another issue some of the directors had was the cost of installing the meters. The RDOS wants most of the meters to be pit meters, which are installed in a pit dug near the front of the property as opposed to inside the house. Fiorito explained that this is because many people’s irrigation systems are tied off from the road and would not be tracked by a meter inside the house. “Currently we are estimating somewhere between $3,500-$5,000 per, it’s really difficult to provide an exact number because it’s going to be based on whatever the excavation looks like, so if it’s through rock it’s going to be more difficult to facilitate, then it would through soil, but that’s the estimation currently. “The way we have it set up is we are funding it through the budgeting process, or we are looking at grants and pilot projects to assist with that funding, it is not something that will be billed directly to the homeowner.” But it was clarified that if they were to receive no grants then the costs would be recovered through water rates. The RDOS currently runs 10 water systems across the region and only one, the West Bench Water System, is fully metered using Neptune technologies water meters. Oliver and now Osoyoos as it rolls out its universal water metering program based on Neptune meters. If passed, a new universal water metering program would apply to around 3,200 water system users, who do not currently have water meters, across the region. The topic will come before the board of directors again before February after it has been discussed with the Naramata Water Committee and RDOS staff collects answers to some of the director’s concerns.The Kremlin fired a new intermediate-range ballistic missile at Ukraine on Thursday in response to Kyiv's use this week of American and British missiles capable of striking deeper into Russia, President Vladimir Putin said. In a televised address to the country, the Russian president warned that U.S. air defense systems would be powerless to stop the new missile, which he said flies at ten times the speed of sound and which he called the Oreshnik — Russian for hazelnut tree. He also said it could be used to attack any Ukrainian ally whose missiles are used to attack Russia. “We believe that we have the right to use our weapons against military facilities of the countries that allow to use their weapons against our facilities,” Putin said in his first comments since President Joe Biden gave Ukraine the green light this month to use U.S. ATACMS missiles to strike at limited targets inside Russia. Pentagon deputy press secretary Sabrina Singh confirmed that Russia’s missile was a new, experimental type of intermediate range missile based on it’s RS-26 Rubezh intercontinental ballistic missile. “This was new type of lethal capability that was deployed on the battlefield, so that was certainly of concern," Singh said, noting that the missile could carry either conventional or nuclear warheads. The U.S. was notified ahead of the launch through nuclear risk reduction channels, she said. The attack on the central Ukrainian city of Dnipro came in response to Kyiv's use of longer-range U.S. and British missiles in strikes Tuesday and Wednesday on southern Russia, Putin said. Those strikes caused a fire at an ammunition depot in Russia's Bryansk region and killed and wounded some security services personnel in the Kursk region, he said. “In the event of an escalation of aggressive actions, we will respond decisively and in kind,” the Russian president said, adding that Western leaders who are hatching plans to use their forces against Moscow should “seriously think about this.” Putin said the Oreshnik fired Thursday struck a well-known missile factory in Dnipro. He also said Russia would issue advance warnings if it launches more strikes with the Oreshnik against Ukraine to allow civilians to evacuate to safety — something Moscow hasn’t done before previous aerial attacks. Kremlin spokesman Dmitry Peskov initially said Russia hadn’t warned the U.S. about the coming launch of the new missile, noting that it wasn't obligated to do so. But he later changed tack and said Moscow did issue a warning 30 minutes before the launch. Putin's announcement came hours after Ukraine claimed that Russia had used an intercontinental ballistic missile in the Dnipro attack, which wounded two people and damaged an industrial facility and rehabilitation center for people with disabilities, according to local officials. But American officials said an initial U.S. assessment indicated the strike was carried out with an intermediate-range ballistic missile. Ukrainian President Volodymyr Zelenskyy said in a Telegram post that the use of the missile was an "obvious and serious escalation in the scale and brutality of this war, a cynical violation of the UN Charter.” He also said there had been “no strong global reaction” to the use of the missile, which he said could threaten other countries. “Putin is very sensitive to this. He is testing you, dear partners,” Zelenskyy wrote. “If there is no tough response to Russia’s actions, it means they see that such actions are possible.” The attack comes during a week of escalating tensions , as the U.S. eased restrictions on Ukraine's use of American-made longer-range missiles inside Russia and Putin lowered the threshold for launching nuclear weapons. The Ukrainian air force said in a statement that the Dnipro attack was launched from Russia’s Astrakhan region, on the Caspian Sea. “Today, our crazy neighbor once again showed what he really is,” Zelenskyy said hours before Putin's address. “And how afraid he is.” Russia was sending a message by attacking Ukraine with an intermediate-range ballistic missile capable of releasing multiple warheads at extremely high speeds, even if they are less accurate than cruise missiles or short-range ballistic missiles, said Matthew Savill, director of military sciences at the Royal United Services Institute, a London-based think tank. “Why might you use it therefore?” Savill said. "Signaling — signaling to the Ukrainians. We’ve got stuff that outrages you. But really signaling to the West ‘We’re happy to enter into a competition around intermediate range ballistic missiles. P.S.: These could be nuclear tipped. Do you really want to take that risk?’” Military experts say that modern ICBMs and IRBMs are extremely difficult to intercept, although Ukraine has previously claimed to have stopped some other weapons that Russia described as “unstoppable,” including the air-launched Kinzhal hypersonic missile. David Albright, of the Washington-based think tank the Institute for Science and International Security, said he was “skeptical” of Putin’s claim, adding that Russian technology sometimes “falls short.” He suggested Putin was “taunting the West to try to shoot it down ... like a braggart boasting, taunting his enemy.” Earlier this week, the Biden administration authorized Ukraine to use the U.S.-supplied, longer-range missiles to strike deeper inside Russia — a move that drew an angry response from Moscow. Days later, Ukraine fired several of the missiles into Russia, according to the Kremlin. The same day, Putin signed a new doctrine that allows for a potential nuclear response even to a conventional attack on Russia by any nation that is supported by a nuclear power. The doctrine is formulated broadly to avoid a firm commitment to use nuclear weapons. In response, Western countries, including the U.S., said Russia has used irresponsible nuclear rhetoric and behavior throughout the war to intimidate Ukraine and other nations. White House press secretary Karine Jean-Pierre said Thursday that Russia’s formal lowering of the threshold for nuclear weapons use did not prompt any changes in U.S. doctrine. She pushed back on concerns that the decision to allow Ukraine to use Western missiles to strike deeper inside Russia might escalate the war. ′′They’re the ones who are escalating this,” she said of the Kremlin — in part because of a flood of North Korean troops sent to the region. More than 1,000 days into war , Russia has the upper hand, with its larger army advancing in Donetsk and Ukrainian civilians suffering from relentless drone and missile strikes. Analysts and observers say the loosening of restrictions on Ukraine's use of Western missiles is unlikely to change the the course of the war, but it puts the Russian army in a more vulnerable position and could complicate the logistics that are crucial in warfare. Putin has also warned that the move would mean that Russia and NATO are at war. “It is an important move and it pulls against, undermines the narrative that Putin had been trying to establish that it was fine for Russia to rain down Iranian drones and North Korean missiles on Ukraine but a reckless escalation for Ukraine to use Western-supplied weapons at legitimate targets in Russia,” said Peter Ricketts, a former U.K. national security adviser who now sits in the House of Lords. ___ Associated Press writers Jill Lawless and Emma Burrows in London, and Zeke Miller and Lolita C. Baldor in Washington contributed to this report. ___ Follow AP’s coverage of the war in Ukraine at https://apnews.com/hub/russia-ukraine

The Pittsburgh Steelers have exceeded expectations thus far in 2024, as the team is 8-3 and atop the AFC North through 12 weeks. Pittsburgh suffered a disappointing 24-19 loss to the Cleveland Browns on Thursday Night Football in Week 12 but will look to bounce back in Week 13 versus the Cincinnati Bengals at Paycor Stadium. Though the Steelers have one of the most complete rosters in the NFL, the team still has some glaring weaknesses, primarily at cornerback. Outside of Joey Porter Jr., Pittsburgh lacks consistent production and high-level play at the position. Though Donte Jackson has shown flashes of dominance, the veteran has been extremely inconsistent in his debut campaign with the Steelers. General manager Omar Khan should look to address Pittsburgh's need for another boundary corner this offseason, and Bleacher Report's Alex Ballentine believes San Francisco 49ers' defensive back Charvarius Ward could join the Steelers in the offseason. Charvarius Ward's contract with the San Francisco 49ers is set to void at the end of the season. He will likely be a pricey free agent, and it only makes sense to sign him to a one- or two-year deal, but he could be the kind of player that puts the Steelers defense over the top. Pittsburgh is a legitimate contender this season because of an elite defense and an offense that understands how to help that elite defense. Joey Porter Jr. continues to improve, but veteran corner Donte Jackson is a bit of a liability. Ward wouldn't come cheap and they may have to do some cap gymnastics to make it work, but the risk could be worth the reward. Ward has been one of the most consistent cornerbacks in the NFL over the last few seasons, as the former undrafted free agent had a career year in 2023 and is having another solid campaign in 2024. Ward posted a career-high five interceptions and a league-leading 23 passes defended last season and was selected to the Pro Bowler and earned a second-team All-Pro selection. Ward doesn't have the flashy interception numbers this year, but the 28-year-old is allowing just a 53% completion rate and an 86.5 passer rating when targeted. The former Middle Tennessee State standout has missed the last three games due to personal reasons. Though Ward hasn't been elite in 2024, adding the Super Bowl LVI champion would be a savvy move from Omar Khan. Ward is still a reliable player who hasn't sustained many major injuries in his career and would be an excellent fit alongside Joey Porter in the secondary. Signing Ward shouldn't be problematic for Khan, as the Steelers are set to boast over $57 million in cap space, per Spotrac , and the former Kansas City Chief shouldn't demand an unreasonable deal. Ward has been an integral piece to the 49ers' defense over the last few years, but San Francisco recently gave fellow cornerback Deommodore Lenoir a $92 million extension , meaning Ward is likely the odd man out in the team's defensive back room.Aaron Rodgers and David Bakhtiari are close friends . So after the quarterback had a tough day in the office on Sunday during the New York Jets ' lopsided loss to the Buffalo Bills, the left tackle had his jokes. Besides leaving the field when the Jets had zero points before garbage time, Rodgers was sacked several times and broke the NFL record. He reached 566 sacks in his career, the most in NFL history by any player. Bakhtiari, who protected Rodgers' blindside for ten seasons, joked about the situation on social media. Hell yeah! Congrats @AaronRodgers12 another one for the record books!!!! https://t.co/6pSiccMhOd Aaron Rodgers has had a rough season for the Jets, and it looks like he will soon be released . If that happens, he might look for other options on the market, or simply decide to retire. David Bakhtiari was released from the Packers in March. He has played only 13 games since he suffered a serious knee injury late in 2020. The left tackle is still trying to return to the field, but there's no recent indication that he will be able to do so. Before the end of the regular season, the Jets will still face the Miami Dolphins next week at MetLife Stadium, which very well might be Aaron Rodgers’ final game as a Jet. This article first appeared on A to Z Sports and was syndicated with permission.

The results came after an exit poll, released immediately after the polling stations closed, showed that Milanovic, backed by the opposition left-wing Social Democrats, had scooped more than 50 percent of the first round vote and would thus avoid the January 12 run-off. Milanovic won 49.11 percent of the first round vote and Primorac, backed by the ruling conservative HDZ party, took 19.37 percent, according to results released by the state electoral commission from nearly all of the polling stations. Such a strong lead for Milanovic, whom surveys labelled a favourite ahead of the vote, raises serious concerns for Prime Minister Andrej Plenkovic's HDZ. The election comes as the European Union and NATO member country of 3.8 million people struggles with biting inflation, widespread corruption and a labour shortage. Among the eight contenders, centre-right MP Marija Selak Raspudic and green-left MP Ivana Kekin followed the two main rivals, the exit poll showed. They each won around nine percent of the vote. Croatia's president commands the country's armed forces and has a say in foreign policy. But despite limited powers, many believe the office is key for the political balance of power in a country mainly governed by the HDZ since independence in 1991. "All the eggs should not be in one basket," Nenad Horvat, a salesman in his 40s, told AFP. He sees Milanovic, a former leftist prime minister, as the "last barrier to all levers of power falling into the hands of HDZ", echoing the view of many that was reflected in Sunday's vote results. The 58-year-old Milanovic has been one of Croatia's leading and most colourful political figures for nearly two decades. Sharp and eloquent, he won the presidency for the Social Democrats (SDP) in 2020 with pledges to advocate tolerance and liberalism. But he used the office to attack political opponents and EU officials, often with offensive and populist rhetoric. Milanovic, who condemned Russia's aggression against Ukraine, has nonetheless criticised the West's military aid to Kyiv. That prompted the prime minister to label him a pro-Russian who is "destroying Croatia's credibility in NATO and the EU". Milanovic countered that he wanted to protect Croatia from being "dragged into war". "As long as I'm president no Croatian soldier will wage somebody else's wars," he said this month. Milanovic regularly pans Plenkovic and his HDZ party over systemic corruption, calling the premier a "serious threat to Croatia's democracy". "I'm a guarantee of the control of the octopus of corruption... headed by Andrej Plenkovic," he said during the campaign. For many, the election is a continuation of the longstanding feud between two powerful politicians. "This is still about the conflict between the prime minister and president," political analyst Zarko Puhovski told AFP. "All the rest are just incidental topics." Primorac, a 59-year-old physician and scientist returning to politics after 15 years, campaigned as a "unifier" promoting family values and patriotism. "Croatia needs unity, global positioning and a peaceful life," he told reporters after casting his ballot in Zagreb, adding that he would later attend a mass. Primorac repeatedly accused Milanovic of "disgracing Croatia", a claim that resonated with his supporters. ljv/bc

Campus cameras showed a gay student leaving his Ole Miss apartment the day he disappearedNEW YORK (AP) — Top-ranked chess player is headed back to the World Blitz Championship on Monday after its governing body agreed to loosen a dress code that got him fined and denied a late-round game in another tournament for . Lamenting the contretemps, International Chess Federation President Arkady Dvorkovich said in a statement Sunday that he’d let World Blitz Championship tournament officials consider allowing “appropriate jeans” with a jacket, and other “elegant minor deviations” from the dress code. He said Carlsen’s stand — which culminated in his quitting the tournament Friday — highlighted a need for more discussion “to ensure that our rules and their application reflect the evolving nature of chess as a global and accessible sport.” Carlsen, meanwhile, said in a video posted Sunday on social media that he would play — and wear jeans — in the World Blitz Championship when it begins Monday. “I think the situation was badly mishandled on their side,” the 34-year-old Norwegian grandmaster said. But he added that he loves playing blitz — a fast-paced form of chess — and wanted fans to be able to watch, and that he was encouraged by his discussions with the federation after Friday’s showdown. “I think we sort of all want the same thing,” he suggested in the video on his Take Take Take chess app’s YouTube channel. “We want the players to be comfortable, sure, but also relatively presentable.” The events began when Carlsen wore jeans and a sportcoat Friday to the Rapid World Championship, which is separate from but held in conjunction with the blitz event. The chess federation said Friday that longstanding rules prohibit jeans at those tournaments, and players are lodged nearby to make sartorial switch-ups easy if needed. An official fined Carlsen $200 and asked him to change pants, but he refused and wasn’t paired for a ninth-round game, the federation said at the time. The organization noted that another grandmaster, Ian Nepomniachtchi, was fined earlier in the day for wearing sports shoes, changed and continued to play. Carlsen has said that he offered to wear something else the next day, but officials were unyielding. He said “it became a bit of a matter of principle,” so he quit the rapid and blitz championships. In the video posted Sunday, he questioned whether he had indeed broken a rule and said changing clothes would have needlessly interrupted his concentration between games. He called the punishment “unbelievably harsh.” “Of course, I could have changed. Obviously, I didn’t want to,” he said, and “I stand by that.” Jennifer Peltz, The Associated Press