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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.