{
  "id": 7170705,
  "title": "Is Chewy’s (CHWY) Margin Story Losing Steam, or Is a 48% Drop the Opportunity?",
  "url": "https://urgent.news/2026/09/13/is-chewys-chwy-margin-story-losing-steam-or-is-a-48-drop-the",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-09-13T19:57:17.000Z",
  "source": {
    "name": "Yahoo Finance",
    "slug": "yahoo-finance",
    "url": "https://finance.yahoo.com/markets/stocks/articles/chewy-chwy-margin-story-losing-195717174.html"
  },
  "original_language": "en",
  "account": "Chewy, Inc. (NYSE:CHWY) released its second-quarter results on September 9, 2026, revealing a 7.3% increase in net sales to $3.33 billion and an adjusted EPS of $0.36. Despite these numbers, the stock faced a sharp decline of about 48% following the release, bringing it close to its low and 48% below its 52-week high. The downgrade from Evercore ISI, RBC, and TD Cowen suggested that Chewy's margin story may be losing momentum, with the stock trading near multi-year lows. Chewy's growth, however, is attributed to its Autoship subscriptions, which provide recurring revenue for the company. Active customers rose to 21.7 million, marking a 3.8% increase. Management also raised its full-year outlook. However, organic revenue growth excluding M&A slowed to 5.7%, and the adjusted EBITDA margin was bolstered by tariff refunds and rebate timing. This margin story, according to analysts, was partly manufactured. The sector faces pressure from Amazon and Walmart, potentially limiting Chewy's pricing power and permanently compressing margins. With a price-to-earnings ratio of 35x and mid-single-digit growth, the stock presents little cushion if the bearish sentiment proves true. Currently, only 44 hedge funds hold Chewy, a significant drop from 53 in the first quarter of 2026. The stock's position remains moderate, and a rebound appears unlikely without a clear growth catalyst. Chewy's recent drop could be a bargain if the deceleration is cyclical, but investors should wait for the next quarterly reports to assess whether there is any real organic reacceleration toward high-single-digit growth and margin expansion.",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}