The Worst Is Over for Chewy
Chewy (NYSE: CHWY) reported fourth quarter and fiscal 2021 results after the market closed on Tuesday, March 29. The news disappointed shareholders, and the stock was down 15% on the day following the announcement. Chewy's stock has been under pressure for several months as the coronavirus pandemic has turned from a tailwind into a headwind.
At the onset, Chewy benefited from a surge of new customers and spending. However, now that economies are reopening, customer growth is slowing. Meanwhile, the pandemic is causing supply-chain disruptions worldwide, creating shortages and raising prices on everything from wages to shipping.
Fortunately for shareholders, Chewy says the worst of the headwinds are behind it, and it is already seeing improving conditions.
Source Fool.com
