Down 50%, Is Chewy Stock a Buy on the Latest Dip?
Chewy stock fell 11% after its recent earnings report, piling onto its recent declines.
Overview
It's been a tough past year for Chewy (NYSE: CHWY). Its shares have been cut in half over the past year, and the stock plunged 11% after earnings came out on Sept. 9. While the company's results were in line with its earlier guidance, it was considered a low-quality beat due to tariff refunds, gift card breakage, vendor-funded merchandise activity, and a shift in rebates into the second quarter.
Let's take a closer look at the pet products e-commerce company's results and prospects to see if this latest dip is a buying opportunity.
Details
While Chewy saw overall solid revenue growth, the company said it continues to see signs of a stressed consumer, as evidenced by fewer treat and other discretionary sales. It expects the pet industry to remain under pressure for the rest of the year, and plans to focus on more controllable factors such as retention and customer acquisition. Along these lines, it plans to launch a redesigned Chewy+ program that includes more health benefits and offers a better customer value proposition.
Source
Originally published at www.fool.com.