Petco's Q1 Earnings Report Analysis: Can the Stock Keep Climbing?
Wednesday, 22 May 2024, 17:32
Petco starts to climb out of a deep hole
Pet retailers' stocks have struggled since the pandemic boom as a spike in pet adoption during the lockdown period has given way to an extended period of slow growth.
However, the shares have apparently fallen far enough that investors are reacting positively to the business still shrinking.
In the first quarter:
- Revenue fell 1.7% to $1.53 billion, topping analysts' consensus estimate of $1.51 billion.
- Petco's gross margin dropped from 38.8% to 37.8%.
- Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) fell from $111 million to $75.6 million.
Can Petco keep climbing?
For the second quarter, Petco expects similar results with flat revenue growth. While the guidance signals potential recovery, bottom-line growth remains a key challenge for the company.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.