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SAN DIEGO - Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported fourth quarter 2024 financial results that exceeded analyst expectations for revenue, sending its stock surging 13.5% in response.
The pet retailer posted Q4 revenue of $1.6 billion, beating the consensus estimate of $1.56 billion. However, this represented a 7.3% YoY decrease, partly due to the loss of an extra week in the 2023 calendar. Comparable sales increased 0.5% YoY.
Petco reported an adjusted loss per share of -$0.05, missing analyst expectations of breakeven earnings. The company’s net loss narrowed to $13.8 million from $22.6 million in the same quarter last year.
"Our results in the fourth quarter demonstrate the progress we’ve made to return Petco to retail operating excellence," said Joel Anderson, Petco’s Chief Executive Officer.
For the full year 2024, Petco’s revenue declined 2.2% to $6.1 billion, while comparable sales rose 0.3%. The company’s adjusted EBITDA fell to $336.5 million from $401.1 million in 2023.
Looking ahead, Petco expects net revenue to decline in the low single digits YoY for both Q1 2025 and the full year 2025. The company projects adjusted EBITDA of $82 million to $83 million for Q1 and $375 million to $390 million for the full year 2025.
Petco plans to close 20-30 net stores in 2025 as part of its real estate strategy.
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