NEW YORK, May 19, 2026, 13:06 EDT
- Chewy shares dropped roughly 7.8% in midday trading, much more than the rest of the market.
- Comments from CEO Sumit Singh at the JPMorgan conference brought consumer spending pressure back in focus.
- Chewy is set to report fiscal Q1 results before the opening bell on June 10.
Chewy Inc. shares slid Tuesday after the company signaled more caution about U.S. shoppers, sending the online pet retailer lower ahead of its fiscal Q1 earnings next month.
The stock traded at $19.95 in midday action, off $1.68, down about 7.8% from where it settled Monday. More than 10.3 million shares changed hands so far, market data showed.
Chewy is coming up on earnings as the focus shifts to whether shoppers are cutting back around the edges, not just buying pet food. Chewy said Monday it will put out fiscal first-quarter 2026 numbers before the bell on June 10, and management will host a call at 8:00 a.m. ET.
Chewy CEO Singh told the J.P. Morgan Technology, Media & Communications Conference that consumers seem “more stretched than we were when we entered the year,” according to Investing.com. He called the pet category resilient, but said it hasn’t been immune to changes in the macro environment. Investing.com
Chewy’s drop outpaced the broader market as the S&P 500 fell about 0.3% and the Nasdaq slipped about 0.5% around the same time. Chewy was hit harder than both benchmarks, making it a notable mover on a sluggish day.
Shares of Petco Health and Wellness slipped less than 1% and Trupanion lost around 1.7%. The names don’t line up perfectly as a comparison, but Chewy took a bigger hit than these other pet-care stocks.
Chewy posted stronger fiscal 2025 numbers than Tuesday’s trading shows. Net sales came in at $12.60 billion, up 6.2%. Adjusted EBITDA, which Chewy defines by taking out interest, taxes, depreciation, amortization and some other items, was $719.2 million. The company finished the year with 21.3 million active customers.
Singh in March said the company left 2025 from a “position of real strength” and highlighted the “durability of the Chewy model.” But Tuesday’s comments were more cautious on the state of consumer wallets. Business Wire
Autoship will be key going into June for Chewy. The company said Autoship sales, from its recurring-order program, were 83.3% of net sales so far in fiscal 2025. That’s more repeat business than many retailers get, but it also means changes in how customers order could matter more for Chewy.
Chewy is moving further into pet healthcare. The company said in April it would buy Modern Animal, a veterinary platform that owns 29 clinics. The deal could boost Chewy Vet Care’s reach to 47 locations from 18. Chewy expects to add over $125 million in annualized run-rate revenue from the acquisition.
Still, there’s clear risk. If consumer spending stays tight, Chewy might see less spending on non-essentials and run into slower customer growth or margin squeeze even as it works on bringing in veterinary operations and new offerings. Chewy has already pointed to tough macro conditions, winning new customers, margins, rising competition and handling deals as key risks in its forward guidance.
Tuesday’s drop puts more focus on the June 10 report. Investors are waiting to see if Chewy’s repeat-order business and bet on pet health still work when family budgets are under pressure.
