Petco reports Q2 earnings beat, in-line revenue; Stock dips

NEW YORK - Petco Health and Wellness Company, Inc. (NASDAQ:WOOF) reported second quarter earnings that beat analyst expectations, but the stock slipped in Tuesday's aftermarket trading.



WOOF shares were down 0.65% following the announcement.



The pet retailer posted adjusted earnings per share of $0.06, surpassing the analyst estimate of a $0.02 loss. Revenue came in at $1.52 billion, in line with consensus forecasts.



The company expects Q3 EPS between -$0.03 and -$0.04, compared to analyst estimates of -$0.03. Revenue guidance of $1.5 billion also missed the $1.51 billion consensus.



Comparable sales increased 0.3% YoY in Q2, while rising 3.5% on a two-year basis. The company's consumables business grew 1.5% YoY, and services and other revenue increased 3.1%. However, this was offset by a 4.7% decline in supplies and companion animal sales.



"Our second quarter results demonstrate the ongoing work of our teams to strengthen our retail fundamentals and accelerate the path to improved profitability," said CEO Joel Anderson.



The company maintained its full-year outlook for capital expenditures of around $140 million and net interest expense of approximately $145 million.

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Source: Investing.com