Chewy Faces Stock Decline Despite Strong Growth
Chewy’s stock (NYSE: CHWY) has fallen 50% over the past year, with a 33% decline in 2026 alone, despite the company maintaining robust growth prospects. As of May, CEO Sumit Singh noted that Chewy is vulnerable to macroeconomic headwinds, yet the company projects revenue growth of 8-9% and aims to expand its EBITDA margin from 5.7% to 10% in the future.
Approximately 84% of Chewy’s sales are generated through its autoship program, focusing predominantly on pet food and medications. The company’s forward price-to-earnings (P/E) ratio is currently at 13.7, with $879 million in cash and no debt. In comparison, competitor Petco has over $1.2 billion in net debt, raising questions about their similar market valuations.
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