Petco Health and Wellness Company, Inc. (WOOF) saw its stock surge 11.11% in pre-market trading following the release of its third-quarter earnings report, which exceeded analyst expectations and signaled progress in the company's turnaround efforts.

The pet retailer reported earnings per share of $0.03, beating the consensus estimate of $0.00 and marking a significant improvement from the $0.02 loss per share in the same period last year. Despite a slight decline in revenue, the company showcased improved profitability, with gross margins rising to 38.9% and operating income increasing by $25.2 million. Investors were further encouraged by Petco's upward revision of its full-year earnings guidance.

Strategic initiatives, including the planned closure of about 20 stores to optimize its retail footprint, also contributed to the positive sentiment. The market appears to be betting on Petco's ability to navigate challenges and drive long-term growth in the competitive pet care sector.