Why Chewy Stock Jumped 21% Last Month
Shares of pet e-commerce company Chewy (NYSE: CHWY) jumped 21.5% in January, according to data provided by S&P Global Market Intelligence. And the upside hasn't ended for shareholders yet. As of market close on Feb. 2, Chewy stock is now up 33% in 2023, ahead of the 8.7% jump for the S&P 500 so far. And a lot of Chewy's gains have to do with Wall Street's growing optimism for the company in the coming year.
Chewy's pet products aren't made for pachyderms, but let's start with the elephant in the room nevertheless. Growth wasn't overly impressive in 2022. Through the first three quarters of 2022, Chewy's net sales are only up 13.7% from the comparable period of 2021. And based on management's fourth-quarter guidance, full-year net sales are only expected to be up 13% year over year.
Most of Chewy's net-sales growth came from higher spending per active customer. In fact, the company's 20.5 million active customers are down from the 20.7 million it had at the start of 2022.
Source Fool.com
