Chewy stock was falling Wednesday even after the pet-supply e-commerce company posted better-than-expected earnings for its fiscal first quarter.The company reported adjusted earnings of 35 cents a share on $3.

Chewy grew sales 8% year over year, although its gross profit margin on those sales inched lower, and its net profit margin declined 30 basis points to a slim 2%. That would probably be fine if Chewy had actually earned $0.35.

Online pet products retailer Chewy (CHWY) is set to report its first-quarter results. Before that event, Mizuho analyst David Bellinger downgraded Chewy. Bellinger believes that the company’s growth has been “fully embedded in expectations.