Chewy (NYSE: CHWY) shares fell 13% to about $36 in early Wednesday trading after the provider of pet supplies reported second quarter 2025 earnings per share (EPS) that declined to $0.15 from $0.70 during the same period last year.
The company said its profit was impacted by a $79.1 million expense for share-based compensation and related taxes.
Its adjusted EPS for the quarter of $0.33, however, was in line with the Wall Street consensus forecast.
Chewy saw its revenue for the period rise 9% year over year to $3.1 billion, surpassing the $3.08 billion average estimate according to analysts surveyed by FactSet.
“Q2 net sales exceeded the high end of our guidance range, growing nearly 9% year over year to $3.1 billion, with Autoship customer net sales increasing by 15% and representing 83% of total net sales for the quarter,” Chewy CEO Sumit Singh said in a statement.
“Chewy’s differentiated value proposition was once again on display, with both active customers and share of wallet (NSPAC) growing 4.5% year over year to reach nearly 21 million customers and $591, respectively.”