Petco Health and Wellness (NASDAQ:WOOF) fell in early morning trading after the company reported fourth-quarter earnings that missed Wall Street’s expectations. Petco posted a revenue of $1.58 Billion, in line with expectations from analysts surveyed by StreetAccount. Petco also reported adjusted earnings per share of 23 cents, below a consensus estimate of 24 cents per share.
The pet retailer generated sales growth of 4.2% to $1.58 Billion during the quarter, led by the company's consumables business (+12.1% year-over-year) and services/other business (+17.0%), which was partially offset by a decline with the supplies/companion animal business (-7.8%). Comparable sales were up 5.3% for the quarter.
CEO Ron Coughlin said the pet category remains resilient and growing and the company plans to continue to execute day-in and day-out while progressing toward its differentiated long-term growth strategy.
Adjusted EBITDA was $170.3 Million in Q4 vs. to $172.2 Million a year ago. Adjusted net income decreased to $62.0 Million or $0.23 per share vs. the consensus mark of $0.22 per share. Free cash flow decreased to $51.1 Million from $68.0 Million a year ago.
Looking ahead, Petco sees full-year revenue of $6.15 Billion to $6.28 Billion vs. $6.38 Billion consensus and adjusted EPS down $0.21 to down $0.13. Capital expenditures of $225 Million to $250 Million are anticipated as well.
WOOF shares began Wednesday down $1.33, or 13.1%, to $8.84.
