Chewy Shares Slip After Earnings Despite Higher Full-Year Outlook
Chewy shares have fallen since its latest report, even as the retailer raised its fiscal 2026 sales outlook and reported customer growth.
Key takeaways
- Chewy shares fell about 10.3% in the month after its latest earnings report.
- Second-quarter sales rose 7.3% to $3,330.2 million.
- Chewy raised its fiscal 2026 net sales outlook to $13.46 billion-$13.57 billion.
Chewy shares have fallen about 10.3% since its latest earnings report, published about a month ago, according to Zacks. As of Friday afternoon, the stock traded at $18.85, down 0.32% since the previous close.
In its second quarter of fiscal 2026, sales rose 7.3% to $3,330.2 million, above estimates. Adjusted earnings were 36 cents per share, matching the consensus estimate.
Active customers increased 3.8% to 21.705 million. Autoship sales rose 9.3% to $2,817.2 million and made up 84.6% of net sales.
Adjusted EBITDA climbed 23.7% to $226.7 million. Chewy said about $10 million of the increase came from timing-related benefits, mainly earlier tariff refunds and shifted rebates. Free cash flow fell 15.5% to $89.5 million.
For fiscal 2026, the company expects net sales of $13.46 billion to $13.57 billion. Its third-quarter forecast calls for sales of $3.323 billion to $3.358 billion and adjusted earnings of around 39 cents per share.
Management’s outlook assumes no meaningful recovery in consumer spending and continued low pricing contribution. The company said it expects to keep gaining market share.
This article was produced with the help of AI technology. Source: Yahoo Finance
