Online pet food retailer Chewy (CHWY Quick QuoteCHWY - Free Report) was one of the big winners of the pandemic, but its latest earnings update disappointed investors and analysts. Revenue of $2.16 billion fell short of expectations despite growing almost 27% year-over-year. The company also reported a loss of $0.04 per share compared to estimates of a loss of $0.02.

Q3 sales guidance came in light as well. Chewy is projecting revenue of $2.20 billion to $2.22 billion. Wall Street was looking for $2.23 billion in sales. CEO Sumit Singh told CNBC that management is still “really bullish about the business.” He also pointed out that “Customer spending on our platform is at an all-time high.” Net sales per active customer rose 13.5% to $404.

Chewy’s growth rate was always going to moderate as the economy reopened, but perhaps the speed of deceleration caught investors off guard.