2023-03-22 07:28:17 ET
Petco Health and Wellness Company ( NASDAQ: WOOF ) tracked lower in early trading on Wednesday after the company posted a mixed Q4 earnings report and set disappointing guidance.
The pet retailer generated sales growth of 4.2% to $1.58B during the quarter, led by the company's consumables business (+12.1% year-over-year) and services/other business (+17.0%), which was partially offset by a decline with the supplies/companion animal business (-7.8%). Comparable sales were up 5.3% for the quarter.
CEO Ron Coughlin said the pet category remains resilient and growing and the company plans to continue to execute day-in and day-out while progressing toward its differentiated long-term growth strategy.
Adjusted EBITDA was $170.3M in Q4 vs. to $172.2M a year ago. Adjusted net income decreased to $62.0M or $0.23 per share vs. the consensus mark of $0.22 per share. Free cash flow decreased to $51.1M from $68.0M a year ago.
Looking ahead, Petco ( WOOF ) sees full-year revenue of $6.15B to $6.28B vs. $6.38B consensus and adjusted EPS down $0.21 to down $0.13. Capital expenditures of $225M to $250M are anticipated as well.
Shares of Petco Health & Wellness ( WOOF ) fell 7.37% in premarket action to $9.42.
For further details see:
Petco falls 7% after setting full-year guidance below expectations