Pet Valu Controls Controllables to Deliver Beats in Challenging 2Q

Dow Jones
08/11
 

1028 ET - Pet Valu managed to eke out a strong 2Q, topping expectations despite a tough consumer environment. TD Cowen's Cheryl Zhang says consumer spending remains soft in 2Q, but "the good news is PET is gaining share and controlling the controllables, driving EBITDA 10% ahead of consensus." She notes that part of the beat comes from timing of a gain on refranchising corporate stores, she says gross margin percentage strength is a positive for the quarter despite a tougher backdrop where financially squeezed consumers are seeking more promotions and value for their pet products. Shares traded 9.9% higher at C$20.66.

 

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