February 21, 2024

Shoppers wait in line outside a Petco pet store in Hollywood, California on April 23, 2020 during the novel coronavirus pandemic.

Robyn Beck | AFP | Getty Images

The Petco Health and Wellness Company reported first-quarter earnings on Thursday that beat Wall Street estimates as a surge in pet adoptions continues to help the retailer attract new customers.

Despite the better than expected performance and an increased profit forecast, Petco shares fell almost 3% in premarket trading.

“We’re attracting new customers and gaining market share in a growing category,” said Ron Coughlin, chairman and managing director, in a press release.

According to Refinitive Consensus Estimates, for the fiscal first quarter ended May 1, the company reported the following:

  • Earnings per share: 17 cents adjusted compared to 9 cents expected
  • Revenue: $ 1.4 billion versus $ 1.27 billion expected

For the quarter, Petco reported net income of $ 7.56 million, or 3 cents per share, compared to a loss of $ 31.2 million, or 15 cents per share, a year ago.

Without items, the company earned 17 cents per share. Analysts surveyed by Refinitiv had expected a profit of 9 cents per share.

Total revenue increased 27% from $ 1.11 billion a year ago to $ 1.41 billion, beating estimates of $ 1.27 billion.

Petco’s sales in the same store increased 28% year over year.

Petco announced it had 1.2 million net new customers in the quarter, which is a multi-year high.

“The acceleration of the category coupled with a strengthening of our customer base gives us the confidence to improve our guidance for the full year,” said Coughlin.

The retailer expects sales for this year to be between $ 5.48 billion and $ 5.58 billion, up from a previous forecast of $ 5.25 billion to $ 5.35 billion.

The earnings outlook has been raised from an earlier forecast from 63 cents to 66 cents per share to 73 to 76 cents per share.

Correction: Petco has exceeded Wall Street earnings expectations.