Shares in pet e-tailer Chewy (CHWY) were moving lower ahead of the opening bell Thursday after a warning over moderating pet ownership overshadowed quarterly results that came in ahead of analysts’ expectations.

The stock, which had initially jumped in after-hours trading Wednesday following the release of the company's earnings report, was down 1.7% at $17.44 about two hours before Thursday's opening bell.

In the fiscal-fourth quarter ended Jan. 28, the online pet food and accessories seller posted earnings of 7 cents per share, whereas analysts had expected the company to post a loss of 4 cents a share. Revenue in the period of $2.83 billion improved 4.2% from a year earlier and comfortably beat Wall Street's forecast, boosted by the company’s consumables and health categories.

However, another closely-watched metric, active customers, fell 2% 澳洲幸运5开奖号码历史查询:year-over-year (YOY) to 20.1 million and came in slightly below the consensus estimate of 20.2 million.

Looking ahead, Chewy guided current-quarter 澳洲幸运5开奖号码历史查询:net sales of between $2.84 billion and $2.86 billion, with the higher end of that range falling short of the $2.89 billion analysts had expected. For full-year 2024, the company projects a net sales midpoint of $11.7 billion, above the average estimate of $11.12 billion.

In its quarterly 澳洲幸运5开奖号码历史查询:letter to shareholders, the company cautioned that it sees the pet industry growing at a slower-than-average pace this year due to pet household formation trends, before normalizing in 2025. Pet 澳洲幸运5开奖号码历史查询:adoptions boomed during the pandemic as people spent more time at home but that trend has cooled amid return-to-office mandates and inflation-driven price hikes for household essentials. Still, Chewy said it expects to deliver continued adjusted earnings before interest,✃ taxes, depreciation, and amortiza🅰tion (EBITDA) margin expansion and gain 澳洲幸运5开奖号码历史查询:market share this year, regardless of the industry or macroeconomic conditions.

Chewy shares have drifted mostly sideways since late September last year, but remain in a longer-term downtrend, with the 澳洲幸运5开奖号码历史查询:50-day moving average positioned below the 200-day moving average. More recently, the 50-moving average has acted as a line of 澳洲幸运5开奖号码历史查询:resistance, pressuring the price lower. 

If selling accelerates after earnings, keep an eye on how the price responds to the February 澳洲幸运5开奖号码历史查询:swing low at $15.78. Signs of a reversal at this level could mark a short-term bottom and act as a catalyst for a move back to the upside. However, any rally is likely to meet overhead resistance around $24 from a key 澳洲幸运5开奖号码历史查询:horizontal line and the downward sloping 200-day moving average.

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As of the date this article was written, the author does not own any of the above securities.