Why Chewy Stock Was Up This Week
Chewy (NYSE: CHWY) stock beat a rising market this week. The pet supply specialist was up 10% at one point before settling to a 5% increase through Thursday trading. That's as compared to a 2.6% increase in the wider market, according to data provided by S&P Global Market Intelligence. Chewy's shares are still underperforming so far in 2023, down slightly even as the S&P 500 has gained nearly 6%.
This week's rally came as investors continued to digest the company's fourth-quarter earnings update.
Chewy said late last week that sales rose 13% through late January, and that profit margin expanded despite soaring costs. While these were positive developments, Wall Street focused instead on the company's shrinking customer base. The active customer base declined by 1% in 2022, while average annual spending jumped 15% to $495.
Source Fool.com
