Petco 2Q Profit Rises as Turnaround Gains Traction

Dow Jones
Yesterday
 

Petco Health and Wellness's second-quarter profit more than doubled as the company sees its turnaround plan gaining traction.

The stock gained 9.1%, to $2.87, in late trading on Wednesday.

The pet-supplies retailer posted a second-quarter profit of $38.7 million, or 13 cents a share, compared with a profit of $14 million, or 5 cents a share, a year earlier.

The company said it received substantially all refunds from tariffs it paid this year and last year in the quarter, boosting its bottom line by $6.8 million.

Revenue was roughly flat at $1.49 billion, in line with analyst estimates, according to FactSet. Same-store sales ticked up 0.6%, compared with analysts' projection of 0.7% growth.

Petco said sales were hurt by initially stronger-than-expected points redemption from the relaunch of its membership program. The company said sales before the relaunch were trending ahead of its outlook for the quarter, which guided for sales up about 0.3% year over year.

Chief Executive Joel Anderson pointed to growth in consumables, a metric he said shows the company's strategy is gaining traction.

"Looking ahead to the second half, we are positioned to benefit from several growth drivers," he added.

The company backed its guidance for the year, forecasting revenue growth in a range of flat to up 1.5% and adjusted earnings before interest, taxes, depreciation and amortization of between $415 million and $430 million.

The company said the outlook gives it the flexibility to continue investing in its growth initiatives in the second half of the year while absorbing ongoing supply chain headwinds.

For the current third quarter, the company expects revenue to grow 0.4% to 1%. Analysts are expecting revenue of $1.48 billion, or up around 1.1%.

 
 

At the request of the copyright holder, you need to log in to view this content

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10