Chewy Is Down 23% in 2026. Is This a Once-in-a-Lifetime Buying Opportunity?

Company Overview - Chewy was founded in 2011 and operates as an online retailer for pet products, supplies, and prescriptions [5] - Revenue growth accelerated during the COVID-19 pandemic due to increased pet adoption, rising from $4.8 billion in fiscal 2019 to $10.1 billion in fiscal 2022 [5] Recent Performance - The stock market has seen a decline, with the S&P 500 index losing 1% from the end of 2025 through March 11 [1] - Chewy's share price has dropped approximately 23% this year, indicating underperformance compared to the broader market [1][2] Customer Metrics - Active customers grew by 4.9% year over year in Q3 of fiscal 2025, reaching 21.2 million [6] - Sales per active customer also increased by 4.9%, amounting to $595 [6] Revenue Streams - Revenue from Chewy's recurring delivery service rose by 13.6% to $2.6 billion, contributing to overall revenue growth of 8.3% [7] Valuation Analysis - Chewy's current price-to-earnings (P/E) ratio stands at 52, down from 68 at the end of 2025, but still considered high compared to the S&P 500's P/E of 29 [8] - The market's valuation reflects high-growth earnings expectations, raising questions about Chewy's ability to meet these expectations [8] - Potential growth initiatives, such as opening veterinarian clinics, may accelerate revenue growth [8]