Chewy’s stock went up on Wednesday after the pet supply retailer raised its full-year sales forecast, which helped balance out a lackluster quarterly earnings report.
The stock rose 1.9% in premarket trading, recovering from Tuesday’s drop. However, Chewy shares are still down significantly for the year as of Tuesday’s close.
Chewy reported adjusted earnings of 36 cents per share for the fiscal second quarter ending August 2, up from 33 cents a year ago and about what Wall Street expected. Net sales increased 7.3% to $3.33 billion, matching the analyst consensus estimate of $3.32 billion, according to FactSet.
Although the quarterly results were modest, Chewy increased its full-year net sales forecast to between $13.46 billion and $13.57 billion, up from its previous range of $13.4 billion to $13.55 billion. The midpoint of this new guidance is higher than Wall Street’s expectation of $13.48 billion. For the third quarter, Chewy expects net sales between $3.323 billion and $3.358 billion, which is close to the analyst consensus estimate of $3.33 billion.
