Here's Why Chewy Stock Dropped Today
Shares of pet e-commerce company (NYSE: CHWY) dropped on Wednesday after the company's financial results for the third quarter of 2024 missed expectations on the bottom line. As of 11:20 a.m. ET, Chewy stock was down about 8%.
In Q3, Chewy added about 200,000 net new customers, reaching 20.2 million total. And over the last 12 months, these customers have spent $567 on average compared with an average of $565 in the previous quarter. This customer and spending growth formed the basis of the company's nearly 5% net sales growth, which was slightly ahead of expectations.
Chewy's Q3 gross margin improved to 29.3%, which was good. Moreover, the company had net income of nearly $4 million compared with a $35 million loss in the prior-year period. While improved, investors had hoped for higher profits especially in light of its higher-than-expected sales. That's why Chewy stock dropped today.
Source Fool.com
Chewy Inc Stock
The stock is an absolute favorite of our community with 40 Buy predictions and no Sell predictions.
With a target price of 39 € there is a positive potential of 37.61% for Chewy Inc compared to the current price of 28.34 €.
