Shares of Petco are down on Thursday, following the company’s second quarter earnings report that revealed it was cutting its 2023 forecast due to consumer spending and discretionary business.
The retailer did report meeting expectations for adjusted earnings while also surpassing estimates on revenue for the second quarter.
“In Q2, we delivered solid top line results and strong free cash flow,” Petco CFO Brian LaRose said in a statement.
“That said, the shift in consumer spending and pressures on our discretionary business mean we’re revising our guidance accordingly,” he added. “Looking ahead, we remain focused on debt paydown and cash flow, both of which will be supported by our productivity initiatives in addition to tightly controlled expense management.”
In the second quarter of 2023, Petco delivered net revenue of $1.53 billion, up 3.4% versus 2022, driven by strength in the company’s consumables business and services and other business.
Meanwhile, second quarter revenue growth was partially offset by the company’s supplies and companion animal business, down 9.4% versus last year.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| WOOF | $5.16 | -1.39 | -21.18 |
On Wall Street, shares of Petco are down roughly 20% on Thursday, after dropping around 25% the last five days.
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