Petco Health & Wellness Co.'s stock WOOF slid 9% in premarket trade Thursday, following the company's announcement of a second-quarter loss and a profit warning for 2023. The San Diego-based pet care and goods company reported a net loss of $14.6 million, or 5 cents a share, for the quarter, compared to income of $13.5 million, or 5 cents a share, in the same period last year. Adjusted per-share earnings were at 6 cents, which matches the FactSet consensus. Revenue increased by 3.4% to $1.53 billion, slightly exceeding the $1.52 billion FactSet consensus.
Focusing on Strengthening the Business
Chief Executive Ron Coughlin emphasized the company's commitment to improving their business despite the ongoing challenges faced by consumers due to the pressure on discretionary spending. "With discretionary spending continuing to be pressured, we're taking numerous strategic actions to strengthen our business, including initiatives to unlock a targeted $150 million in cost savings and productivity enhancements by the end of fiscal 2025," said Coughlin in a statement.
Lowered Guidance for 2023
Along with the disappointing second-quarter results, Petco Health & Wellness Co. also revised its guidance for 2023. The company now anticipates full-year adjusted EPS of 24 cents to 30 cents and revenue within the range of $6.150 billion to $6.275 billion. This is a downgrade from the FactSet consensus of EPS at 42 cents and revenue at $6.279 billion.
Petco's stock has experienced a significant decline of 31% year-to-date, while the S&P 500 has seen a gain of 15.5%.