Chewy shares are down 11% this week as of noon ET on Thursday, even after the online pet goods retailer beat Wall Street's sales expectations in its second-quarter earnings report on Wednesday and posted adjusted earnings per share in line with analyst hopes. The company also raised its full-year guidance, but analysts noted that a one-time tariff benefit may have helped Chewy beat earnings, and the stock tumbled regardless. Second-quarter highlights included sales growth of 7.3%, with 5.7% organic growth, a 3.8% increase in active customers to 21.7 million, a 1.9% rise in net spend per active customer, autoship revenue growth of 9.3%, adjusted EPS climbing 9.1%, and Chewy Vet Care clinic revenue soaring by triple digits. Management guided for 6.8% to 7.7% revenue growth in 2026. CEO Sumit Singh said the pressured consumer backdrop for the pet market did not see a meaningful recovery but did not deteriorate further, adding that the environment has broadly stabilized and Chewy continues to outperform the broader pet category by roughly 2x to 3x.
Chewy IncChewy beat Q2 sales and raised guidance, but a one-time tariff benefit may have flattered earnings and shares fell 11%.
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