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Key Takeaways
- Petco Health and Wellness Company shares fell after the company reported another loss, issued guidance that was short of estimates and changed its CEO.
- CEO Ron Coughlin stepped down and was replaced on an interim basis by board member R. Michael Mohan.
- Petco shares have lost nearly three-quarters of their value over the past year.
Shares of Petco Health and Wellness Company (WOOF) slumped Wednesday as the pet products retailer and operator of veterinary clinics posted another quarterly loss, gave weak guidance and made a shakeup in its leadership.
Petco reported a fourth-quarter loss of $22.6 million after a surprise $1.24 billion loss in the previous quarter. Taking out one-time items, the company reported earnings per share (EPS) of $0.02, in line with estimates. Revenue rose 6.1% to $1.67 billion, which was more than expected. Comparable store sales declined 0.9%.
Petco also announced that Chief Executive Officer (CEO) Ron Coughlin has stepped down and left the board. He’s being replaced on an interim basis by R. Michael Mohan, who has served as a director for three years. The company explained that a comprehensive search for a permanent CEO is now being conducted.
The firm noted that because of the change in leadership, it was not providing full-year guidance. However, it predicted current-quarter revenue of approximately $1.5 billion, with an adjusted per-share loss of $0.06. Both were below forecasts.
Shares of Petco closed 1.6% lower at $2.52, after falling as low as $2.33 during the session. The stock has lost about three-quarters of its value over the past year as inflation and a pullback in consumer spending have hurt demand.