Story perspectives

Chewy Stock Plummets 15% Despite Strong Q2 Earnings

9/13/2025

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Summary

Story summary

Chewy (NYSE: CHWY) saw a 15% stock decline due to conservative guidance, despite a 9% sales increase and a 38% rise in adjusted earnings per share (EPS) in Q2.
Management projects slower 7.5% sales growth and $0.30 EPS for the next quarter, disappointing investors.
Autoship sales increased by 15%, now representing 83% of total sales, indicating stability.
The company is pursuing higher-margin opportunities, including sponsored ads and a new membership program.
Chewy plans to open 20 Vet Care locations by year-end to boost profit margins.

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Story summary

Chewy (NYSE: CHWY) saw a 15% stock decline due to conservative guidance, despite a 9% sales increase and a 38% rise in adjusted earnings per share (EPS) in Q2.
Management projects slower 7.5% sales growth and $0.30 EPS for the next quarter, disappointing investors.
Autoship sales increased by 15%, now representing 83% of total sales, indicating stability.
The company is pursuing higher-margin opportunities, including sponsored ads and a new membership program.
Chewy plans to open 20 Vet Care locations by year-end to boost profit margins.