Chewy shares fell 8.6% as investors reacted to a disappointing free cash flow figure of $89.5 million, overshadowing the company's revenue and profit beats for the second quarter.
Chewy shares fell 8.6% despite an earnings beat, as free cash flow significantly missed expectations, driving bearish sentiment.
Chewy Inc. shares dropped 8.6% on Thursday despite reporting second-quarter revenue of $3.33 billion and adjusted earnings of $0.36 per share, both beating analyst expectations. The sell-off was triggered by a significant miss in free cash flow, which fell 15.5% to $89.5 million, well below the $133 million forecast by Wall Street.
While Chewy beat revenue and profit targets, investors focused on the company's free cash flow, which came in at $89.5 million, significantly missing the $133 million expected by analysts.