Chewy (CHWY) Stock: Good Enough Quarter, but Guidance Disappoints

TLDR

• Chewy cut its full-year net sales forecast to $13.4B–$13.55B, down from $13.6B–$13.75B
• Q1 adjusted EPS came in at 43 cents, in line with estimates; net sales rose 7.7% to $3.36B
• Q2 guidance missed expectations — EPS guided at ~36 cents vs. 40 cents expected
• Active customers grew 3.6% to 21.5 million; net sales per customer up 2.4% to $597
• Stock spiked to $22.28 in premarket before pulling back to $20.38

Chewy stock jumped and then retreated in premarket trading Wednesday after the company reported fiscal first-quarter results and cut its full-year sales outlook.

Chewy, Inc., CHWY

The stock hit a high of $22.28 in early premarket action but had pulled back to $20.38, down about 2.5%, by the time broader markets were digesting the news.

Q1 net sales came in at $3.36 billion, up 7.7% year over year and just ahead of the $3.35 billion Wall Street expected. Adjusted EPS landed at 43 cents, matching analyst estimates.

CHEWY $CHWY EARNINGS ARE OUT!
EPS: $0.43 | Est. $0.43
REV: $3.36B | Est. $3.35B
IMPLIED MOVE TODAY: ±9.95%!! pic.twitter.com/7VsuTjbVgp

— Schaeffer's Investment Research (@schaeffers) June 10, 2026

Net income for the quarter was $94.8 million, or 23 cents a share, compared to $62.4 million, or 15 cents a share, in the same period last year.

Active customers grew 3.6% to 21.5 million. Net sales per active customer rose 2.4% to $597.

CEO Sumit Singh said Chewy continues to gain market share and add new customers despite a more challenging environment. He also maintained that the company is expanding profitability.

Outlook Trimmed Across the Board

Despite the Q1 beat, the guidance picture is less rosy. Chewy trimmed its full-year net sales forecast to $13.4B–$13.55B, down from the prior range of $13.6B–$13.75B. Analysts had expected $13.65B.

For Q2, Chewy guided for adjusted EPS of around 36 cents on sales of $3.3B–$3.33B. The Street was looking for 40 cents EPS and $3.36B in sales — both misses.

Chewy did hold firm on its adjusted EBITDA margin guidance of 6.6% to 6.8% for the full year.

The lowered outlook wasn’t entirely a surprise. Just weeks before the print, Singh flagged that consumers were feeling “more stretched” than they had been at the start of the year.

Pet Sector Headwinds Were Already Flashing

Those concerns had been building across the pet sector. Zoetis, an animal health company, recently reported a weak quarter and cut its own guidance, sending its stock to its lowest close in years.

Zoetis CEO Kristin Peck pointed to “increased price sensitivity” among pet owners — the same macro pressure Singh later echoed.

That backdrop had investors cautious heading into Chewy’s print. The Q1 results, while not impressive, at least cleared the low bar the market had set.

Chewy maintained its adjusted EBITDA margin guidance of 6.6% to 6.8% for the full year.

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