Chewy Slides 10% as Treat Demand Weakens Despite Raised Outlook
CHWY sits 22% above its 52-week low of $17.4.
Summary
Chewy's Q2 earnings beat on EPS but missed on revenue, and the stock fell 10.27% to $20.88 as investors focused on discretionary spending pressure. Management raised full-year sales and EBITDA margin guidance, but the treat category slowed sharply, signaling cautious pet owners. Autoship sales grew 9.3% to $2.82B, now 84.6% of net sales, and active customers rose 3.8% to 21.7M. The company expects AI cost savings of low tens of millions in FY2026, scaling to ~$50M annualized in FY2027. This follows the Q2 10-Q filed earlier today, which confirmed the raised guidance and revealed $552.8M in acquisition spending and $400M in buybacks.
At the time of this announcement, CHWY was trading at $21.19 on NYSE in the Trade & Services sector, with a market capitalization of approximately $8.7B. The 52-week trading range was $17.40 to $42.24. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Benzinga.