Why Petco Health And Wellness Shares Are Falling Today
Portfolio Pulse from Shivani Kumaresan
Petco Health And Wellness Co Inc (NASDAQ:WOOF) reported a 6.1% year-on-year sales growth for Q4 FY23, surpassing analyst expectations. However, comparable sales slightly declined, and gross profit decreased by 3%. The company's operating income saw a significant drop, and adjusted EBITDA fell by 33.3%. Despite a positive cash flow, the outlook for Q1 2024 is below analyst estimates, leading to a 5.86% decrease in WOOF shares.
March 13, 2024 | 3:42 pm
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Petco's Q4 FY23 report showed sales growth but faced declines in comparable sales, gross profit, and a significant drop in operating income. The Q1 2024 outlook is weaker than expected, contributing to a 5.86% fall in stock price.
The decline in Petco's stock price is directly related to the mixed Q4 FY23 results and a weaker than expected Q1 2024 outlook. Despite beating sales forecasts, operational challenges and a cautious outlook have negatively impacted investor sentiment.
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