SAN DIEGO - Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported better-than-expected third quarter results on Wednesday, although its fourth quarter guidance came in below analyst expectations.
The pet retailer's shares rose 2% following the announcement.
Petco posted a Q3 adjusted loss of -$0.02 per share, beating the analyst estimate of -$0.04 per share. Revenue for the quarter came in at $1.51 billion, slightly above the consensus estimate of $1.5 billion and up 1.2% YoY. Comparable sales increased 1.8% YoY.
"Our third quarter results demonstrate the meaningful progress we're making to strengthen our retail fundamentals to drive sustainable, profitable growth," said Joel Anderson, Petco's Chief Executive Officer.
The company's consumables business grew 2.7% YoY, while services and other business increased 5.0%. However, these gains were partially offset by a 2.8% decline in supplies and companion animal business.
Petco's Q4 guidance fell short of analyst expectations. The company forecasts Q4 EPS between $0.00 and $0.02, below the consensus of $0.04. Revenue is projected at $1.55 billion, also below the analyst estimate of $1.574 billion.
Adjusted EBITDA for Q3 was $81.2 million, up from $72.2 million in the same period last year. Gross profit increased 4.7% YoY to $575.8 million.
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