Chewy Stock Slides as Guidance Disappoints Despite Solid Q2 Results

The Quick Take

• Chewy reported Q2 revenue of $2.86 billion, beating estimates, but issued below-consensus Q3 guidance.
• Active customer count declined year-over-year, raising concerns about post-pandemic pet spending normalization.
• Management cited macro softness and elevated promotional spend as headwinds heading into the holiday quarter.

Chewy shares fell sharply after the online pet retailer posted fiscal second-quarter results that beat top-line expectations but delivered a disappointing outlook for the current quarter. The company projected Q3 revenue of $2.78–2.80 billion, missing the Wall Street consensus of approximately $2.89 billion, triggering a sell-the-news reaction.

Active customer metrics continued to trend lower, with the count falling to 19.8 million from 20.4 million a year ago. Management attributed the attrition partly to price-sensitive customers reducing discretionary pet purchases, though autoship revenue held up relatively well at 78% of total net sales.

Analysts remain divided on whether the active-customer decline reflects a structural shift in pet-sector spending or a transitory normalization following the pandemic adoption boom. Bulls point to expanding veterinary telehealth and prescription businesses as long-term margin drivers, while bears see the deceleration as evidence that growth ceilings are lower than previously modeled.

Synthesized from 5 sources.