Petco Health Shares Slump After Q1: The Details

Petco Health and Wellness Company Inc WOOF delivered Q1 sales of $1.56 billion, up 5.4% Y/Y, slightly ahead of the consensus of $1.51 billion.
The increase was driven by strength in the company's consumables business, up 11.2%, and services & other business, up 25.4% Y/Y, partially offset by the company's supplies and companion animal business, down 7.6%.
Adjusted EBITDA was $111.0 million compared to $119.2 million in the prior year.
Adjusted Net Income decreased by $21.4 million to $14.9 million.
Adjusted EBITDA decreased 6.9% to $111.0 million.
"We continue to execute on our strategy amidst the current environment, delivering our 18th consecutive quarter of comp sales growth in the first quarter, driven by the ongoing strength in consumables and record performance in our services business," said Petco CEO Ron Coughlin.
Guidance: Petco reaffirms FY23 sales guidance of $6.15-$6.275 billion, compared to the consensus of $6.27 billion.
It expects an adjusted EBITDA of $520 million-$540 million.
The company forecasts adjusted EPS of $0.40-$0.48 compared to the consensus of $0.45.
Price Action: WOOF shares are down 21.90% at $7.95 on the last check Wednesday.
Photo via Wikimedia Commons

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