Petco Health and Wellness Company, Inc. (WOOF) released its second-quarter financial results after the market closed on Tuesday, revealing a mixed bag of news. While the company reported a quarterly loss of nine cents per share, missing analyst expectations of a two-cent loss, its revenue of $1.52 billion met estimates. This represents a 1.99% increase compared to the same period last year.
Despite the overall loss, Petco’s consumables business showed positive growth, increasing by 1.5% year-over-year. Services and other businesses also saw a rise, growing by 3.1%. However, the company’s supplies and companion animal business experienced a decline of 4.7% compared to the previous year.
Looking ahead, Petco remains optimistic. CEO Joel Anderson stated, “Our second quarter results demonstrate the ongoing work of our teams to strengthen our retail fundamentals and accelerate the path to improved profitability.” Anderson expressed his confidence in Petco’s ability to leverage its strengths to capture a greater market share, achieve sustainable profitability, and generate value for its shareholders.
In terms of future expectations, Petco predicts a third-quarter loss of between three and four cents per share, aligning with the analyst consensus estimate of a three-cent loss. The company also anticipates revenue of approximately $1.5 billion, slightly exceeding the $1.51 billion estimate.
Further, Petco projected net interest expenses of approximately $145 million and capital expenditures of approximately $140 million for the entire fiscal year 2024.
Following the release of these results, Petco’s stock price experienced a surge of 2.62% in after-hours trading, reaching $3.15 per share. This comes after a significant 7.72% gain during the regular trading session on Tuesday.
While the second quarter results show some challenges, Petco’s focus on strengthening its fundamentals and its positive outlook suggest a path towards improved financial performance in the future. The company’s commitment to capturing a greater market share and delivering value for its shareholders positions it for potential growth in the coming quarters.
