Chewy lowered its full-year sales growth guidance to 6.3%-7.5% after shares plunged 54% over the past year, reflecting pet owners’ tightening budgets. The company maintained its fiscal 2026 adjusted EBITDA margin forecast of 6.6%-6.8%, citing supply chain improvements and disciplined spending driving efficiency.
Chewy’s shares have fallen 54% over the past year as post-pandemic spending waned, prompting management to reduce its full-year sales growth forecast to a 6.3%–7.5% range. Investors reacted to the guidance cut as evidence of weakening consumer demand for premium pet products.
Despite trimming revenue expectations, Chewy reaffirmed its fiscal 2026 adjusted EBITDA margin guidance of 6.6%–6.8%. The company attributed the margin outlook to supply chain optimizations, increased onsite sponsored advertising revenue and disciplined cost controls boosting profit per dollar of sales.
Management’s ability to expand margins without relying on robust top-line growth raises questions about the company’s resilience in a more budget-conscious market. Investors will be watching whether Chewy’s efficiency strategy can offset future pressure on consumer spending and sustain its profitability trajectory.
