Tracking market reaction to Chewy's earnings

Pet supplies specialists Chewy reports Q3 earnings, Yahoo! Finance's Ines Ferre reports.

Video transcript

- Welcome back. We have earnings results from online pet products platform Chewy just crossing the wires. Yahoo Finance's Ines Ferre is standing by with more. Ines.

INES FERRE: And Emily, Chewy reporting net sales for the third quarter of $2.21 billion. That met street expectations of 2.21. But the third quarter adjusted EBITDA coming in at $6 million. And the estimate was for $23 million. So that's quite a big miss. That's likely why you're seeing shares in after hours that are down. Also I want to mention gross margin because the company reported gross margin of 26.4%, expanding 90 basis points year over year.

But the street was expecting gross margin to come in at 27.1%. The stock year to date is down 34%. Concerns over consumer growth, since the company had so much growth last year during the thick of the pandemic. Right now, shares are down.

- All right, Yahoo Finance's Ines Ferre, thank you so much for that breakdown.