SAN DIEGO - Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported a narrower-than-expected loss for its first quarter, sending shares up by 11% as investors responded positively to the company's financial results.
The pet health and wellness firm posted an adjusted loss of $0.04 per share, which was $0.01 better than the analyst consensus of a $0.05 loss per share. However, revenue fell slightly short of expectations at $1.5 billion compared to the consensus estimate of $1.53 billion.
The company's revenue declined by 1.7% compared to the same quarter last year, with comparable sales dipping by 1.2%. Despite this, Petco's consumables business saw a slight increase of 0.1%, and its services and other business grew by 4.2%. The decrease in revenue was primarily due to a 6.8% reduction in the supplies and companion animal business. The GAAP net loss for the quarter was $46.5 million, or $0.17 per share, compared to a net loss of $1.9 million, or $0.01 per share, in the prior year.
Interim CEO Mike Mohan expressed confidence in the company's strategy, stating, "In Q1 we made meaningful progress against our strategy to reposition the business for sustainable and profitable growth." He emphasized the strength of Petco's brand and the focus on retail fundamentals and cost transformation to restore profitability.
Looking ahead to the second quarter of 2025, Petco anticipates an adjusted EPS of approximately $0.02, aligning with analyst expectations. The company also expects Q2 revenue to be around $1.525 billion, slightly above the consensus estimate of $1.52 billion.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.