Chewy shares have plunged 45.3% over the past three months, underperforming the industry's 0.2% dip and the S&P 500's 11% gain. Management lowered fiscal 2026 net sales guidance to $13.40-$13.55 billion from $13.60-$13.75 billion, citing a softer consumer environment and weaker category growth, while also warning that active customer additions may trend toward the lower end of 150,000-250,000 per quarter. The company faces pressure on premiumization and net sales per active customer, and growth initiatives like Autoship enhancements have been muted by macroeconomic headwinds. Chewy's trailing 12-month price-to-sales ratio of 0.58 sits below the industry average of 2.22, and the stock closed at $17.77, 59.5% below its 52-week high of $43.84. Zacks Investment Research assigns Chewy a Rank #4 (Sell), advising existing investors to consider reducing exposure and prospective investors to remain on the sidelines.
Chewy IncChewy lowered sales guidance and warned of slower customer additions due to softer consumer environment and weaker category growth.
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