Investors initially put Chewy (NYSE: CHWY) stock in the doghouse after the company's late-March earnings report. While sales expanded at a decent pace for most of 2022, and earnings trends were strong, the pet supply specialist lost customers in Q4 and for the wider fiscal year. That slump raised fears that growth will be harder to achieve in 2023 and beyond.
But there are good reasons to believe the worries are overblown. Let's look at a few reasons why Chewy stock still looks attractive right now.
The major concern for the business is that Chewy is losing customers. Its base of active shoppers fell 1% year over year in Q4 and for the full 2022 year. That metric alone was a key reason why share prices fell in the immediate aftermath of management's earnings announcement. Chewy needs to keep gaining customers if it's going to dramatically expand its sales footprint.
Source Fool.com