Chewy CEO says no signs of consumer weakness at the online pet supplies store
Chewy (CHWY) CEO Sumit Singh is defending his business trends after first quarter results unleashed hounds on the stock price.
"We haven't [seen consumer weakness] at Chewy. The momentum that we've carried out of Q1 actually has continued [into the second quarter]," Singh said on Yahoo Finance's Wealth (video above).
Shares of the online pet supplies retailer plunged more than 10% on Wednesday after the company only reaffirmed its full-year profit margin guidance. Chewy executives also suggested on its earnings call that the first quarter likely represents the high-water mark for the business this year financially.
Investors wanted a more upbeat tone, seeing as the stock surged by about 50% from April 8 to June 6, according to Yahoo Finance data.
"Momentum continues with first quarter sales (+8.3%), EBITDA ($193 million; +18% year over year), and net customer adds ahead of Street. But the high bar wasn't met. The market was looking for a beat and raise, and they reiterated. It makes sense with what we're hearing about the pet macro. A lot is going right for Chewy, more valuable new active customers, sponsored ads, etc. Q1 performance and Q2 guidance should put results near the upper end of the range," Jefferies analyst Kaumil Gajrawala said in a note.
Gajrawala reiterated a Hold rating on Chewy shares.
Earnings analysis
-
Net sales: +8.3% year over year to $3.12 billion, vs. $3.08 billion estimate (guidance: $3.06 billion to $3.09 billion)
-
Gross margin: 29.6% compared to 29.7% last year, vs. 29.9% estimate
-
Diluted earnings per share: $0.35, +12% year over year, vs. $0.32 estimate (guidance: $0.30 to $0.35)
What else caught our attention
-
No signs of US recession: Autoship sales rose 14.8% from the prior year. Autoship customers as a percentage of sales are at an all-time high.
Guidance:
-
2026
-
Operating margin: 5.4% to +5.7% (reiteration)
-
-
2Q26
-
Diluted EPS: $0.30 to $0.35 (consensus: $0.31)
-
Brian Sozzi is Yahoo Finance's Executive Editor and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email
Content Original Link:
" target="_blank">
