Shares of Petco Health and Wellness Company, Inc. (WOOF) soared 16.41% in after-hours trading on Thursday, following the release of the company's second-quarter 2025 financial results. The pet retailer delivered a surprising earnings beat and maintained its full-year sales outlook, despite facing challenges in the current economic environment.

Petco reported quarterly earnings of $0.05 per share, significantly outperforming analyst expectations of a $0.01 loss. This represents a remarkable 155.56% increase compared to the $0.09 loss per share reported in the same period last year. While quarterly sales of $1.489 billion slightly missed the analyst consensus estimate of $1.493 billion by 0.26%, the company's ability to maintain profitability in a challenging retail landscape appears to have impressed investors.

Adding to the positive sentiment, Petco maintained its full-year net sales outlook, demonstrating confidence in its business model and growth strategies. However, the company did caution that it expects third-quarter net sales to be down in the low single digits year-over-year. Despite this near-term headwind, the market's enthusiastic response suggests that investors are focusing on Petco's ability to navigate the current retail environment successfully and its potential for long-term growth in the pet care industry.