Key Stats for Petco Stock
- Friday’s Price Change: -23%
- Current Share Price: $2.78
- 52-Week High: $6.29
- WOOF Stock Price Target: $3.67
What Happened?
Petco Health and Wellness (WOOF) stock plummeted 23% following its first-quarter earnings report that showed revenue missing analyst expectations.
In fiscal Q1, the pet retailer reported an adjusted earnings per share of $0.01, compared to estimates of a loss of $0.04 per share. However, quarterly revenue of $1.49 billion fell short of the Street estimate of $1.5 billion and declined from $1.53 billion in the same period last year.
The revenue miss comes as Petco continues its multi-phase transformation strategy focused on improving retail fundamentals and profitability.
CEO Joel Anderson emphasized that 2025 is “a self-help story for Petco,” with the company not relying on external tailwinds, such as increased pet adoption, to drive performance.
Comparable sales declined 1.3% during the quarter, with Petco citing ongoing efforts to optimize product assortment and eliminate what management referred to as “empty calorie” promotions.
Adding to investor concerns, Petco faces headwinds from tariff exposure, with approximately 7% of merchandise cost of goods sold coming from countries currently impacted by tariffs. However, management reiterated its full-year outlook despite these challenges.
See Petco’s full analyst estimates, earnings results, and earnings transcript (It’s free) >>>
What the Market Is Telling Us About Petco Stock
The sharp decline in Petco stock suggests investors are focused more on the top-line miss than on profitability improvements.
Despite expanding gross margins by over 30 basis points and delivering significant expense leverage, the market appears concerned about Petco’s ability to return to revenue growth.
Petco explained that it is currently in “Phase 2” of its transformation, focusing on implementing retail fundamentals. Growth initiatives are not expected until the second half of 2025 and into 2026.
While management expressed confidence in their strategy and highlighted improvements in their services business, investors seem to want clearer visibility on when the revenue trajectory will improve.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
