Chewy Dropped Today -- Is It Still a Buy?

Online pet products retailer Chewy (NYSE: CHWY) benefited greatly from the economic shutdowns that were widespread in the early stages of the coronavirus pandemic. People were shopping more from home and, trying to fill the void left by a dearth of human interaction, pet adoptions increased. That proved to be rocket fuel to Chewy's top line, which expanded at an almost unbelievable clip.

A year later, the company's growth is still encouraging -- but not eye- popping, and that slowdown is why Chewy's stock ended up falling 8.1% on Friday. So do investors have reason to be disappointed?

Chewy's net sales in fiscal 2020 (which ended this Jan. 31) came in at just over $7.1 billion, up a massive 47.4% over the full-year 2019 tally of $4.8 billion. That's an incredible number by any stretch of the imagination. And, notably, it was an improvement on the 37.2% sales increase from 2018 to 2019. It's little wonder that investors got excited about the future for the retailer, noting that it also deftly addresses the long-term increase in pet spending that has been taking place for years. So it was a long-term and a short-term play all in one.

Source Fool.com