Why Petco Shares Are Tumbling Today
Portfolio Pulse from Lekha Gupta
Petco Health and Wellness Co Inc (NASDAQ:WOOF) shares dropped by around 13% after the company reported Q2 FY23 results and lowered the FY24 EPS outlook. Q2 sales were $1.53 billion, up 3.4% Y/Y, driven by strength in the consumables business and services & other business. However, adjusted net income decreased to $16.3 million from $43.5 million in the prior-year quarter. The company also initiated a cost action plan, expecting annualized gross run-rate cost savings of $150 million by the end of FY25.
August 24, 2023 | 12:24 pm
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Petco's shares dropped after reporting Q2 FY23 results and lowering the FY24 EPS outlook. The company also initiated a cost action plan, expecting savings of $150 million by FY25.
The drop in Petco's shares is due to the company's Q2 FY23 results and the lowering of the FY24 EPS outlook. The company's cost action plan, which expects savings of $150 million by FY25, may help to mitigate some of the negative impact in the long term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100