Wall Street still isn't ready to buy into 's (NYSE: CHWY) rebound story. The e-commerce retailer's stock has underperformed the market in 2023 on worries over slowing growth trends. Fewer shoppers are placing orders with the pet supply specialist as compared to pandemic highs, after all.

On the bright side, Chewy's average order size is growing, partly thanks to price hikes. And an increasing proportion of shoppers are signing up for its subscription-based delivery service. Yet the company's improving financial position is an even better signal of improving returns ahead for the business.

Sure, Chewy's customer base shrank in fiscal 2022, which ended in late January. Its active shopper base declined by 1% in the past year after jumping 8% higher in 2021.

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Source Fool.com