Petco’s stock slides 9% after company swings to loss and cuts 2023 guidance

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Petco Health & Wellness Co.’s stock slid 9% in premarket trade Thursday, after the pet care and goods company swung to a second-quarter loss and issued a...

Petco Health & Wellness Co.’s stock WOOF, -1.95% slid 9% in premarket trade Thursday, after the pet care and goods company swung to a second-quarter loss and issued a profit warning for 2023. The San Diego-based company had a net loss of $14.6 million, or 5 cents a share, for the quarter, after income of $13.5 million, or 5 cents a share, in the year-earlier period. Adjusted per-share earnings came to 6 cents, matching the FactSet consensus. Revenue rose 3.4% to $1.

“With discretionary spending continuing to be pressured, we’re taking numerous strategic actions to strengthen our business, including initiatives to unlock a targeted $150 million in cost savings and productivity enhancements by the end of fiscal 2025,” Chief Executive Ron Coughlin said in a statement. The company also cut its guidance for 2023. It now expects full-year adjusted EPS of 24 cents to 30 cents and revenue of $6.150 billion to $6.275 billion.

 

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