Stock Market Sell-Off: Is Chewy a Buy?
Shares of Chewy (NYSE: CHWY) have taken a massive drubbing this year thanks to the stock market sell-off, and the company's results for the second quarter of fiscal 2022 (ended July 31) further dented investor confidence in the stock. Are the pessimists right? Or is there any hope for the online pet retailer?
Chewy stock plunged after the company released its results on Aug. 30. The online pet supplies retailer swung to a profit last quarter while analysts were expecting a loss, but inflation has put the brakes on its sales growth. As a result, Chewy has slashed its revenue forecast for the full year, with CEO Sumit Singh pointing this out on the earnings conference call:
Across the pet category, pricing escalated throughout the second quarter. Consumers in the pet category responded to growing economic uncertainty by curtailing some of their purchase activity, leading to industrywide declines in unit volume.
Source Fool.com
