Shares of Petco Health and Wellness (NASDAQ:WOOF) saw a significant drop of more than 26% intra-day today following the company’s earnings report for its latest quarter, which fell short of market expectations.
The pet retailer posted a third-quarter earnings per share (EPS) of negative $0.05, compared to the analysts’ predictions of a positive $0.02 EPS. The revenue for the quarter was reported at $1.49 billion, a slight decrease of 0.5% year-over-year, and also below the expected $1.51 billion.
Despite the overall downturn, the company did report some positive segments. Its consumables business showed a growth of 1.8% compared to the previous year, and its services and other business segments grew by 15% year-over-year. However, these gains were partly negated by an 8.8% drop in its supplies and companion animal business compared to the previous year.
These disappointing results occur as Petco navigates through a tough consumer market. The company has stated its commitment to improving performance by expanding its market appeal and managing costs and capital more efficiently.
For the fiscal year 2024, Petco anticipates earnings of $0.08 per share, which is considerably lower than the Street estimate of $0.27. The projected revenue for 2024 is expected to be between $6.15 billion and $6.275 billion, close to the consensus projection of $6.25 billion.