GMBStaff
3 Sep 23
<p>Chewy Inc. (CHWY) saw its stock price drop by nearly 12% after an earnings beat that didn't calm worries about the overall market. Analysts had mixed views on the results, with UBS highlighting lower margins and Oppenheimer mentioning positive earnings but a decline in customer additions. E...
Chewy Inc. (CHWY) experienced a nearly 12% drop in its stock price following an earnings beat that failed to ease concerns about the macro environment. While analysts had mixed opinions on the results, with UBS pointing to lower margins and Oppenheimer noting positive earnings but declining customer adds, Evercore ISI downgraded the stock due to concerns about market competition and uncertainty regarding expansion into Canada. CEO Sumit Singh acknowledged the challenges of the current consumer mindset and inflation and emphasized the company's commitment to earning customer trust. Despite strong Q2 results, including a 14.3% sales increase and improved adjusted EBITDA, cautious consumer spending and inflation concerns are impacting the company's outlook. Analysts have varying views on Chewy's prospects, with UBS expressing caution about profitability and Evercore ISI downgrading the stock to In Line from Outperform.Source: [Seeking Alpha](https://seekingalpha.com/article/4455020-chewy-12-percent-pre-earnings-rally)