CHWY: Chewy Stock Drops 12% as Pet Lovers Spent Less on Furry Friends

The online pet retailer struggled to attract buyers in the second quarter, resulting in lower subscriber growth year-on-year.

• Chewy stock CHWY dropped sharply on Thursday as the company reported slowing user growth for the second quarter. The online petcare supplier’s shares fell 12% after active users for the June quarter came in at 20.39 million, diving below the 20.49 million from the same period a year earlier.
• Despite the modest drop in customers, Chewy posted a surprise profit of 4 cents a share on revenue of $2.78bn. Analysts were projecting a loss of 5 cents a share on sales of $2.76bn. The figures were below last quarter’s bulky profit of 20 cents a share on the exact same revenue of $2.78bn.
• For the current quarter, the pet store is looking to pick up net sales of $2.74bn, slightly below analysts’ consensus of $2.79bn. Chewy, founded by meme stock icon Ryan Cohen, who is also GameStop’s exec chairman, is failing to excite investors as its stock is down more than 30% this year.