Shares of Chewy dropped Wednesday as the pet supplies retailer reported mundane quarterly earnings and raised its fiscal year sales outlook.

Chewy stock fell 9.2% to $21.12 on Wednesday and was on pace for its largest daily percentage decline since Sept. 10, 2025, according to Dow Jones Market Data. Shares have fallen 30% this year as of the closing bell on Tuesday.

The company on Wednesday posted adjusted earnings of 36 cents a share in the fiscal second quarter ended Aug. 2, up from 33 cents a year ago and matching Wall Street's expectations. Net sales rose 7.3% to $3.33 billion, in line with the analyst consensus call for $3.32 billion, according to FactSet.

While fiscal second-quarter earnings were unspectacular, the company raised its fiscal year net sales guidance to $13.46 billion to $13.57 billion from $13.4 billion to $13.55 billion. The new guidance at the midpoint is above Wall Street's expectation for $13.48 billion.

Chewy also guided for $3.323 billion to $3.358 billion in net sales in the fiscal third quarter. The analyst consensus forecasts quarterly net sales totaling $3.33 billion, according to FactSet.

"As expected, Chewy reported a somewhat noisy second quarter," William Blair analyst Dylan Carden wrote Wednesday.

The analyst noted that while gross margins held up better than anticipated, management spoke to "discrete items such as the timing of tariff and rebate reimbursements" being the largest drivers of margin upside.

"Overall guidance continues to expect no greater improvement in the underlying industry or execution at the midpoint, while some stability in the industry provides greater confidence in bringing up the lower end of the range," Carden added.