Online pet products retailer Chewy Inc . (NYSE:CHWY) saw solid sales growth amid the pandemic as consumers eschewed brick-and-mortar stores. However, given that the company is currently struggling with supply chain bottlenecks and rising costs, which impacted its earnings in its last reported quarter, is it worth adding the stock to one’s portfolio now? Let’s find out.Chewy, Inc. (CHWY) in Dania Beach, Fla., is a pure-play e-commerce company geared toward pet products. The company offers approximately 70,000 products from 2,500 partner brands through its chewy.com retail website and mobile applications. CHWY has witnessed significant growth amid the pandemic due to rising pet ownership and the tendency of owners to buy products for their furry companions online. In addition, the company recently entered the pet insurance market and has been working with veterinarian offices to integrate its services into their clinics.
However, the stock has tumbled 34.8% in price over the past six months and 28.3% over the past month as CHWY struggles to navigate macroeconomic uncertainties.
In addition, CHWY recorded disappointing earnings results in its last reported quarter, raising investors’ concerns about the sustainability of the company’s growth. This could pose a significant threat to its price performance in the coming months.