Petco shares edge lower on worse-than-expected Q1 print, outlook reaffirmed

Published 05/06/2025, 21:22
Petco shares edge lower on worse-than-expected Q1 print, outlook reaffirmed

SAN DIEGO - Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported first quarter earnings that fell short of analyst expectations, though the pet retailer reaffirmed its full-year guidance. Shares edged down 0.55% following the release.

The company posted a Q1 adjusted loss of $0.04 per share, worse than the $0.02 loss analysts were expecting. Revenue came in at $1.5 billion, below the $1.55 billion consensus estimate and down 2.3% year-over-year.

Comparable sales decreased 1.3% compared to the same quarter last year. However, gross profit margin expanded by approximately 30 basis points to 38.2% of net sales.

"We are pleased to deliver first quarter earnings results ahead of our guidance and to reaffirm our outlook for fiscal 2025 which now incorporates the impact of tariffs," said CEO Joel Anderson. He noted the performance reflects strong execution by Petco’s team and resilience in the pet category.

For the full fiscal year 2025, Petco continues to expect net sales to decline in the low single digits compared to the previous year. The company also reaffirmed its adjusted EBITDA guidance range of $375 million to $390 million.

Anderson said Petco is accelerating efforts to strengthen retail fundamentals and return to sustainable, profitable growth. The company is focused on executing its plans to drive improved performance.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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