Why Petco (WOOF) Shares Are Sliding Today - Petco Health and Wellness (NASDAQ:WOOF)

Petco Health And Wellness Co Inc WOOF is down over 15% during Wednesday's session following its mixed Q4 performance and lackluster FY23 outlook.
WOOF reported fourth-quarter FY22 sales growth of 4.2% year-on-year to $1.577 billion, marginally above the consensus of $1.570 billion.
Comparable sales climbed 5.3% versus last year and 18.8% on a two-year basis.
Gross profit decreased 1% Y/Y to $627.3 million, with a profit margin of 39.7%.
Operating margin was 4.9%, and operating income for the quarter fell 6% to $77.6 million.
Adjusted EBITDA decreased 1.1% Y/Y to $170.3 million.
Adjusted EPS of $0.23 missed the analyst consensus of $0.24.
Petco held $201.9 million in cash and equivalents as of Jan. 28, 2023. Cash provided by operating activities for the quarter totaled $136.5 million, with a free cash flow of $70.6 million.
Outlook: Petco expects FY23 net sales of $6.15 billion - $6.275 billion versus the Street view of $6.36 billion.
The company sees FY23 adjusted EPS down $0.21 - down $0.13.
In Fiscal 2023, the company expects to make a total of $100 million in principal payments on its term loan, including the $35 million paid in March.
Also Read: Freshpet, Petco Health Launch Customized Fresh Pet Food Subscription Delivered To Pet Parents' Doors
Price Action: WOOF shares are trading lower by 7.28% at $9.43 in premarket on the last check Wednesday.

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Petco Share Drop Post Mixed Q4 Performance, Gloomy FY23 Outlook