The company also issued a lackluster full-year outlook
Pet e-tailer Chewy Inc (NYSE:CHWY) reported a first-quarter earnings miss before the open, overshadowing its revenue beat. The company issued a lackluster full-year outlook, too, despite recent customer growth. At last check, CHWY was down 11.3% to trade at $40.63.
Shares are now on track for their third-straight loss, as well as their worst day since August 2023. The equity is pulling back from its June 6, two-year high of $48.62, but support from the 40-day moving average could contain today's losses. For 2025, the stock still sports a 21% lead.
Short sellers are in control, with short interest up 17.7% over the last two reporting periods. The 14.80 million shares sold short now make up 7.8% of CHWY's available float, or three days' worth of pent-up buying power.
Options traders were already leaning bearish. This is per the equity's 10-day put/call volume ratio of 1.50 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks in the 98th percentile of annual readings.
Options volume is running at 7 times the intraday average amount today, with 13,000 calls and 19,000 puts traded so far. The weekly 6/13 40-strike put is the most popular contract, followed by the 47-strike put in that series, with new positions being opened at the latter.