Why Chewy Stock Was Down 6% on Wednesday
Shareholders of Chewy (NYSE: CHWY) lost ground to the market early Wednesday. The pet supply retailer's stock was down 6% by 11:15 a.m. ET, compared to a 0.5% drop in the S&P 500. The company is currently trailing the broader market by a wide margin in 2022, down 32% so far in the year.
Wednesday's drop came as investors digested new earnings reports that painted a mixed picture about the health of consumer spending.
Target, one of the country's biggest retailers, said in a pre-market earnings announcement that sales trends materially weakened in late October and into November. The company cited inflation, slowing economic growth, and rising interest rates for depressing customer traffic and making shoppers more price sensitive. Target lowered its short-term outlook and warned about falling profit margins as it cuts prices.
Source Fool.com
