:max_bytes(150000):strip_icc()/GettyImages-2217655454-4aa123fb36474cf3b8e35b8b3a7eacec.jpg "Petco Posts Unexpected Profit as Turnaround Plan Takes Hold")
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Key Takeaways
- Petco Health + Wellness shares jumped on as the pet supplies retailer reported a surprise profit in the second quarter.
- Analysts had anticipated an earnings per share loss.
- Petco Health + Wellness raised its adjusted EBITDA guidance.
Shares of Petco Health + Wellness (WOOF) were purring Friday, a day after the pet supplies retailer posted a surprise profit and raised its outlook as its turnaround plan produced benefits.
The company reported second-quarter earnings per share of $0.05 while analysts surveyed by Visible Alpha were looking for a per-share loss of $0.03. Adjusted EBITDA of $113.9 million also topped forecasts.
Revenue fell 2.3% year-over-year to $1.49 billion, and comparable store sales dropped 1.4%, both below estimates. Petco, which also hosts events such as a bearded dragon scavenger hunt and free ice cream for dogs, explained that the slide in revenue was caused by 25 net store closures last year and 10 so far this year.
CEO Joel Anderson said in the first half of the year Petco “established a solid foundation for our transformation as we continued to strengthen our economic model and improve retail operating fundamentals.”
The company now expects full-year adjusted EBITDA of $385 million to $395 million. Its previous guidance was for a range of $375 million to $390 million.
Petco Health + Wellness is the cat’s meow for investors today, with the news sending shares up 17% into positive territory for the year.
