Chewy (NYSE: CHWY) stock has been stumbling since the company reported its fiscal first-quarter 2026 earnings on June 10.
Chewy reported gains in revenue, earnings per share, and net margin, but the stock still slipped after guidance projected a challenging sales environment
Then Chewy continued its fall today following a series of analyst downgrades, losing another 5%. The fall is the latest in a series of declines in Chewy stock, which is now down 43% this year and 84% off its all-time highs set during the COVID-19 pandemic. Considering Chewy is seeing increased sales and improved margins, are investors overreacting to the guidance?
Let’s take a closer look at what’s happening. About Chewy stock Chewy, based in Florida, is an online pet retailer that sells food, toys, treats, supplements, and other supplies. The business caters to the estimated 56.3 million U.S. households that own dogs and 43.1 million that own cats, providing a large base of potential customers.