By Kelly Cloonan
Petco Health & Wellness expects revenue to continue to decline in the fiscal first quarter and 2025 after logging lower sales in the fourth quarter.
The company on Wednesday said it expects revenue to fall at a low single digit rate in both the current quarter and for the full year, after declining 2.2% in 2024. Analysts polled by FactSet expected growth of 2% for the current year.
The company also forecast adjusted earnings before interest, taxes, depreciation and amortization between $375 million and $390 million for the full year, ahead of the $371 million expected by analysts.
Shares rose 11.9% in late trading to $2.73.
The outlook came after the pet-product retailer said its loss narrowed to $13.8 million, or 5 cents a share, for the three months ended Feb. 1, from a loss of $22.6 million, or 8 cents a share, a year earlier. Analysts polled by FactSet expected a loss of 2 cents a share.
Fourth-quarter revenue fell 7% to $1.55 billion from $1.67 billion a year ago. Analysts expected $1.56 billion. Same-store sales, meanwhile, rose 0.5% from a year ago, below analyst estimates for an increase of 0.8%.
Chief Executive Joel Anderson said the results show progress the company has made in its turnaround but that there is still more work ahead.
For the current year, Petco expects to close up to 30 stores.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
March 26, 2025 16:44 ET (20:44 GMT)
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