Chewy, Inc. (CHWY) shares plummeted 5.25% in pre-market trading following the release of its third-quarter fiscal 2025 financial results. The drop comes despite the company reporting higher revenue and profit compared to the same period last year.
Chewy's Q3 revenue rose 8.3% year-over-year to $3.12 billion, slightly above analyst expectations, while net income increased to $59.2 million from $3.9 million a year earlier. Adjusted earnings per share of $0.32 also surpassed estimates. However, the lack of specific future guidance or a more significant earnings beat may have disappointed investors, leading to the pre-market sell-off.
The company highlighted market share expansion and improved margins, but the stock's reaction suggests the results may not have met heightened investor expectations. Chewy's active customer base grew 4.9% to 21.2 million, with net sales per active customer also rising 4.9% to $595.
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