WOOF - Why Petco Health and Wellness Stock Rebounded Today
2023-11-30 18:24:00 ET
Shares of Petco Health and Wellness (NASDAQ: WOOF) rebounded 10.6% on Thursday, defying several analyst downgrades on the heels of a much larger post-earnings drop yesterday. Petco's gains today only recouped around a third of its 30%+ plunge on Wednesday , which came after the pet-products retailer announced significantly weaker-than-expected quarterly results.
Petco's third-quarter net revenue declined 0.5% year over year to $1.49 billion, hurt by what CEO Ron Coughlin described as a "challenging consumer environment." On the bottom line, that translated to an adjusted ( non-GAAP ) net loss of $0.05 per share, swinging from a profit of $0.11 per share in the same year-ago period.
During the subsequent conference call, Petco management also outlined "an operational reset of the business" designed to focus on increasing profitability and competitive positioning. That's easier said than done, of course, for a consumer-discretionary stock with a business that largely operates at the mercy of broader consumer-spending trends.
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Why Petco Health and Wellness Stock Rebounded Today