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Key Takeaways
- Petco announced the hiring of Joel Anderson as CEO late Wednesday afternoon, a move analysts called a “key step in the company’s revitalization.”
- Anderson will join from discount retailer Five Below, shares of which fell on the news.
- Petco shares moved higher Thursday.
Petco (WOOF) shares rose Thursday after the pet retailer named Joel Anderson its new chief executive officer.
The announcement landed hours after discount retailer Five Below (FIVE) yesterday said Anderson was departing. The news contributed to Five Below shares losing a quarter of their value Wednesday.
Petco shares were recently up more than 3% to a bit under $4. Five Below shares were down another 5%.
Petco Hiring CEO With ‘Wealth of Retail Experience’
Petco said Anderson would start July 29. Wedbush analysts said Thursday that Anderson’s “wealth of retail experience” makes the hire a ” key step in the company’s revitalization,” raising their price target to $5 from $4.
Anderson spent nearly a decade as CEO of Five Below, with several years of experience in a number of executive positions with Walmart (WMT) and other retailers.
“I am excited to join Petco at a pivotal time as we reposition the business for a stronger future,” Anderson said in a statement.
Petco’s shares are up more than 20% this year, well off spring lows below $1.50.