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Chewy ( CHWY ) shares dipped 2.5% Wednesday when the online pet supplies retailer missed profit forecasts as the number of active customers fell and costs rose.

The company reported third-quarter adjusted earnings per share (EPS) of $0.20, while the average estimate of analysts surveyed by Visible Alpha was $0.23. Revenue rose 4.8% year-over-year to $2.88 billion, slightly more than expected.

Chewy said active customers declined 0.5% to 20.16 million and operating expenses rose 3.3% to $818.2 million. Net sales per active customer increased 4.2% to $567, and autoship customer sales rose 8.7% to $2.30 billion.

Chewy Raises FY Sales Outlook

Chewy anticipates current-quarter sales of $3.18 billion to $3.20 billion. It revised its full-year sales outlook to $11.79 billion to $11.81 billion from the previous $11.60 billion to $11.80 billion.

Despite today's decline, shares of Chewy are almost 40% higher this year. They have had an interesting run in 2024 after meme stock hero Keith Gill, better known as " Roaring Kitty ," took a large stake in the company over the summer, only to dump it a few months later.

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