Shares of Petco Health & Wellness took a hit as the company reported a loss for the second consecutive quarter and revised its profit expectations for the year.
Share Prices Decline
Petco’s stock experienced a significant drop of 21%, reaching $5.18 per share. Over the past three months, the stock has fallen by 35% and a staggering 66% since the beginning of the year.
Weakened Financial Performance
In the second quarter, the pet-products retailer recorded a net loss of $14.6 million, or 5 cents per share, compared to a profit of $13.5 million, or 5 cents per share, during the same period last year. Analysts had predicted narrower losses of 1 cent per share.
While revenue rose to $1.53 billion, surpassing analysts’ expectations of $1.52 billion, the company’s supplies and companion animal business experienced a decline in revenue of 9.4%.
Revised Guidance
In response to shifting consumer spending habits and pressures on discretionary spending, Chief Financial Officer Brian LaRose stated that the company has adjusted its guidance accordingly. Petco now forecasts adjusted earnings per share in the range of 24 cents to 30 cents, compared to the previous guidance of 40 cents to 48 cents.
Notably, the company’s full-year revenue guidance remains unchanged.
