Chewy's (CHWY) upcoming fiscal Q2 financial results are expected to test the credibility of management's outlook for H2, UBS Securities said in a Tuesday note.

The company is scheduled to report its fiscal Q2 financial results on Sept. 9.

Analysts said Chewy is gaining market share, expanding its EBITDA margin, and investing in initiatives that will likely support durable growth.

Weaker premiumization and attach rates, which have constrained spending in recent months, could limit Chewy's sales growth to the mid-single-digit range, even in a relatively resilient category, according to the note.

Analysts said that in the company's Q2 results, investors will be on the lookout for evidence that recent sales moderation is reflective of cautious spending rather than weaker demand.

UBS retained a neutral rating and a $24 price target on the stock.

Chewy shares were up 1.7% in Wednesday trading.

Price: 24.12, Change: +0.40, Percent Change: +1.69