Shares of Chewy rose after the company filed a shelf registration statement, giving it the flexibility to raise capital in the future.

The stock gained 5.1% to $21.49. Shares are down 35% year to date.

The online pet-supplies retailer said it has filed a form known as a shelf registration--which alerts investors that it could issue stock at some point in the next few years--in a Monday filing with the Securities and Exchange Commission.

The company said it plans to use proceeds from selling securities for general corporate purposes, which may include repaying debt, financing acquisitions and for working capital.

Shelf registrations allow companies to accelerate the process of selling shares in the future, giving them the opportunity to take advantage of favorable market conditions.

The filing comes as Chewy contends with cautious demand among consumers, a headwind it expects to continue through the rest of this year. During an earnings call last week, the company said consumers are under pressure from inflation and higher gas prices and continue to spend on food and medicine for their pets, but they are cutting back on more discretionary categories like treats.