Chewy (CHWY -10.83%) stock is falling today on the heels of the company's latest quarterly report. The pet products e-commerce specialist's share price was down 7.7% as of 11 a.m. ET. The S&P 500 was down 0.3% at the same point in the daily session, and the Nasdaq Composite was down 0.5%.
The broader market is seeing moderate bearish momentum today as investors react to macroeconomic concerns, and Chewy's latest quarterly report has also failed to spur net buying action. As of this writing, the stock is now down roughly 35% year to date.
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Chewy's quarterly results weren't bad
Before the market opened this morning, Chewy published results for the second quarter of its current fiscal year -- a period that ended on Aug. 2. The company's non-GAAP (adjusted) earnings per share of $0.36 in the period were in line with the average Wall Street analyst estimate, and sales of $3.33 billion topped the average forecast by roughly $10 million. Revenue increased roughly 7.4% year over year despite a challenging retail backdrop, and the company's gross margin of 30.4% matched last quarter's level.
NYSE: CHWY
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What's next for Chewy?
While Chewy stock is getting hit with sell-offs today, the company actually raised its full-year sales guidance. Management now expects full-year sales to come in between $13.46 billion and $13.57 billion -- up from its previous target for sales between $13.4 billion and $13.55 billion.
Even though the midpoint of the company's new guidance range exceeded the average analyst target of $13.48 billion in sales for the fiscal year, Chewy is seeing a valuation pullback today. The pet-products retailer has continued to execute efficiently even as consumer pressures are leading to more cautious spending in the category. Still, investors are concerned about what the macro backdrop means for the business's near-term performance.
