Petco shares go off leash, surge more than 25% after earnings beat expectations
With the economy on shaky footing, maybe investors are hedging by purchasing pet goldfish. Shares of Petco are up more than 28% Thursday, following the brick-and-mortar pet store chain’s earnings report after the bell on Wednesday.
Investor excitement isn’t just about pet owner demand for uncomfortable photos of their dog with the Easter Bunny: Petco’s full year-earnings outlook of between $375 million and $390 million exceeded Wall Street’s expectations of $367 million.
The chain, which hired a new CEO over the summer, said it will close 30 unprofitable stores this year — adding to last year’s count of 25 closures. As it sheds low-performing locations, Petco is boosting its e-commerce biz: the company announced a partnership with Uber Eats on Thursday, bringing all of its US locations to the delivery app.
Rival Chewy also topped estimates when it reported this week, reaching $3.23 billion in revenue (easily outselling Petco, which scored $1.55 billion).
The chain, which hired a new CEO over the summer, said it will close 30 unprofitable stores this year — adding to last year’s count of 25 closures. As it sheds low-performing locations, Petco is boosting its e-commerce biz: the company announced a partnership with Uber Eats on Thursday, bringing all of its US locations to the delivery app.
Rival Chewy also topped estimates when it reported this week, reaching $3.23 billion in revenue (easily outselling Petco, which scored $1.55 billion).
