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
With 43 Buy predictions and not a single Sell prediction Chewy Inc is an absolute favorite of our community.
As a result the target price of 39 € shows a very positive potential of 69.6% compared to the current price of 23.0 € for Chewy Inc.
