Petco Stock Rises After Company Hires New CEO from Five Below
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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.
