Why Chewy Stock Dropped Today

Shares of leading online pet care retailer Chewy (NYSE: CHWY) dropped 4% as of 1 p.m. EDT on Friday, according to data provided by S&P Global Market Intelligence . Since July 16, Chewy's shares have slid 19%.

While nothing specifically changed with Chewy's operations to cause this drop, a number of external factors seem to be weighing on the company's share price.

The tail wagging the dog

The primary culprit for today's decline seems to be Chewy trading in sympathy with Amazon , which missed analysts' sales expectations in the second quarter and guided for weaker-than-expected revenue in the next. Citing a more cautious and deal-focused consumer as the cause of this decline, the world's largest online retailer extended an earnings season where a multitude of consumer-facing businesses have noted tightening spending from customers.

This weakness -- paired with a less-than-stellar jobs report this morning -- has made the market less optimistic about Chewy's upcoming earnings on Sept. 4. However, as valid as these concerns about consumer-spending trends are, Chewy's focus on the recession-resilient pet care industry provides valuable protection in times of lower consumer confidence.

This resilience should prove especially true considering that 78% of the company's sales come from customers using its Autoship subscription. Providing customers with automated, recurring purchases of mostly non-discretionary items like pet food, medicine, supplements, and treats, Autoship locks in a large and critical base of sales for Chewy.

These sticky sales, combined with Chewy's No. 1 ranking on Forrester's Customer Experience Index and its potential to continue growing profitability for years to come , should provide long-term success that outweighs today's pessimism.

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Josh Kohn-Lindquist has positions in Chewy. The Motley Fool has positions in and recommends Amazon and Chewy. The Motley Fool has a disclosure policy .