Shares of Petco Health and Wellness Company, Inc. (NASDAQ: WOOF) tumbled 5.25% in after-hours trading on Thursday following the release of its first-quarter 2025 financial results and disappointing guidance for the second quarter.

The pet retailer reported quarterly sales of $1.49 billion, missing analyst estimates of $1.50 billion and marking a 2.36% decrease from the $1.53 billion reported in the same period last year. Comparable sales decreased by 1.3% year-over-year, indicating challenges in maintaining growth momentum. The company posted a net loss of $0.04 per share, which met analyst expectations but failed to show improvement from the same quarter last year.

Adding to investor concerns, Petco provided a weak outlook for the second quarter of 2025. The company expects Q2 net sales to decline in the low single digits year-over-year, with adjusted EBITDA projected between $92 million and $94 million. This guidance suggests continued pressure on the company's top-line growth and profitability. Despite these challenges, Petco reaffirmed its full-year 2025 outlook, maintaining a cautiously optimistic stance for the longer term. The after-hours stock plunge reflects investor disappointment with the company's current performance and near-term prospects in an increasingly competitive pet care market.