Chewy Flags Weaker Consumer, Trims Guidance Despite Topping Q1 Estimates

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Shares of Chewy Inc (NYSE:CHWY) were trading lower on Thursday, even after the company reported upbeat first-quarter results.

Here are some key analyst takeaways from the event:

  • Citizens JMP Securities analyst Andrew Boone maintained a Market Outperform rating and price target of $28.
  • Needham analyst Bernie McTernan reiterated a Hold rating on the stock.
Citizens JMP Securities: Chewy reported revenue of $3.4 billion and EBITDA of $253.1 million, both topping consensus estimates, Boone said in a note. He added, however, that the company guided to revenues of $3.3 billion at the midpoint for the second quarter, which represents:

  • A slowdown to around 6% year-on-year, from 7.7% in the first quarter
  • A sequential decline of around 2%
"The deceleration reflects a weaker consumer environment late in 1Q26, as consumers became more deliberate on discretionary spending relative to prior quarters, weighing on attach rates and demand for premium goods," the analyst wrote.

Chewy lowered its full-year revenue guidance by $200 million, highlighting macro headwinds on discretionary pet purchases, he further stated.

Needham: While Chewy reported better-than-expected results, the macro headwinds that began in the second half of the quarter have impacted estimates for the year, McTernan said. Although the company continues to gain market share, this may not offset the impact of the macro trends, he added.

At this point, it is more prudent to take a conservative view of the Modern Animal acquisition's potential to drive revenue acceleration, the analyst stated. "CHWY expects to end the year with 60 clinics and invest further in expansion in '27E and beyond," he further wrote.

CHWY Price Action: Chewy shares were down 4.95% at $18.98 at the time of publication on Thursday. The stock is trading at a new 52-week low, according to Benzinga Pro data.