Chewy Stock Is Setting Up For Long-Term Profitable Growth
Chewy, Inc (NASDAQ: CHWY) shares are moving lower following a solid report and mixed guidance. The takeaway from the results and outlook contradicts this move and has the stock set up for a buy later in the year. While the margin outlook is weak, the guidance can be labeled cautious and includes plans for investment and flexibility in uncertain conditions. Share prices are down now, but where will they be after another year of profitable growth and market share gains? International expansion plans are cutting into the margin outlook now but will drive margin expansion later.
We recognize that the operating environment remains challenging, so we will continue to be disciplined and focused as we navigate 2023, a shareholder presentation explained. Our first-quarter and full-year 2023 guidance reflects a balanced view that incorporates the strength and visibility of our business model, and our planned growth investments, while also providing some flexibility against an uncertain economic backdrop.