Petco Health and Wellness (WOOF) shares plunged premarket Wednesday after the company reported earnings for its latest quarter, missing consensus expectations.
The pet company reported Q3 EPS of ($0.05), $0.07 worse than the analysts' estimate of $0.02. Revenue for the quarter came in at $1.49 billion, down 0.5% YoY and below the consensus estimate of $1.51 billion.
Petco shares are down more than 18% ahead of Wednesday's open.
The company said its consumables business was up 1.8% compared to last year, while its services and other business was up 15% YoY. However, the growth was partially offset by its supplies and companion animal business, which fell 8.8% versus the prior year.
The disappointing results for the company come as it continues to navigate a challenging consumer environment. However, it said it is "taking swift and decisive action to improve the performance" by broadening its appeal and tightly managing costs and capital.
The actions taken include the introduction of the company's largest national cat and dog food value brands to "meet the needs of all pet parents and deliver incremental profits over time," said Petco CEO Ron Coughlin.
"We're confident these actions, combined with continued growth in services, omnichannel capabilities, an industry-leading premium assortment, and dedicated Petco partners, will better position us to capture the long-term growth trends in the category and deepen our connection with all pet parents," he added.
Looking ahead, Petco sees FY2024 earnings at $0.08 per share, well below the consensus of $0.27. FY2024 revenue is seen between $6.15 billion and $6.275 billion, versus the consensus of $6.25 billion.