Petco Health and Wellness Company, Inc. (WOOF) shares are skyrocketing 24.18% in pre-market trading on Thursday, following a trifecta of positive developments that have boosted investor confidence in the pet retailer's future prospects.

The surge comes on the heels of Petco's better-than-expected fourth-quarter financial results. The company reported Q4 sales of $1.60 billion, surpassing analysts' estimates of $1.56 billion. Petco's gross margin saw a significant improvement, increasing by 1,180 basis points to 38%. The adjusted EBITDA came in at $96.1 million, with a margin rate of 6.2%, exceeding expectations.

Adding to the positive momentum, Petco announced a new partnership with Uber Technologies, Inc. to bring its wide selection of pet essentials to the Uber Eats platform. This collaboration will make Petco products available for on-demand or scheduled delivery across the contiguous United States, potentially expanding the company's reach and convenience for customers. Furthermore, Petco outlined strategies to improve profitability, including plans to close 20 to 30 underperforming stores in 2025, optimizing its product assortment, and enhancing its omnichannel capabilities. While the company expects overall net sales to decline by low single digits in 2025, its emphasis on cost control and operational improvements aims to boost long-term profitability and shareholder value.