Amazon just ran its first Pet Day sales event - watch these stocks
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The pet retail sector is being shaken up a bit by Amazon (AMZN) launching its first Pet Day shopping event.
Amazon Pet Day lasted 24 hours with deals seen across pet, home, and electronics. The company also ran marketing tie-ins for Prime members for 10% cash back on pet products for Prime Rewards Visa Signature cardholders.
Consumer sites have reported on huge deals posted on the Amazon Pet Day website page.
On Wall Street, Needham analyst Anna Andreeva dug deep to find some potential on the sector looking forward.
"We counted ~240 SKUs in key items across categories at a 26% average discount , with the steepest % off in Supplies (35-40% off); offers in Consumables were more mass-segment focused--we believe AMZN lost share in Consumables for the past 8 quarters and is now back on offense."
Needham lowered revenue and EBITDA estimates on Hold-rated Chewy (NYSE:CHWY) with promotions appearing to be picking up in the sector. Andreeva called CHWY's guidance for flat gross margin this year optimistic.
Shares of Chewy (CHWY) fell 0.56% in premarket trading to $30.20. Petco Health and Wellness Company (WOOF) was down 0.26%. BARK Inc. (BARK) is another pet retailer to watch for an Amazon effect. To a lesser degree, PetIQ (PETQ) also has some exposure to promotions and pricing.
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