Why Chewy Tanked 10% in September
Shares of Chewy (NYSE: CHWY) tanked 10.2% in September, according to data from S&P Global Market Intelligence.
That move sent the stock of the online retailer of pet food and supplies from $61 per share to $55 during the month. For context, shares of Chewy were down 21% for the year in mid-March, but ended September up 89% for the year.
During September, Chewy reported strong fiscal second-quarter results, which showed 47% net sales growth and encouraging margin expansion. Gross profit margin improved to 25.5% in the quarter from 23.6% in the year-ago quarter, while active customers grew 38%. Clearly, the COVID-19 pandemic is helping more pet owners discover Chewy's convenient online shopping experience.
Source Fool.com
