Petco exceeds analysts’ expectations with $1.5 billion revenue

The firm posted $1.56 billion (€1.45B)‎ in net revenue in its first quarter, up by 5.4% year-over-year. Its net revenue was $1.48 billion (€1.37B)‎ in the same period of 2022.

Petco stated that Q1 2023’s revenue growth was “partially offset by the company’s supplies and companion animal business, down 7.6% versus the prior year.”

CEO Ron Coughlin highlighted that sales increases were mainly driven by the “ongoing strength” in consumables and record performance in the services business.

Conversely, the company reported an operating income of $27.6 million (€25.7M) in the first quarter of 2023, down from $49.9 million (€46.5M) in 2022.

Forecast reaffirmed 

Market watchdog Proactive Investors wrote that although the net revenue and profit exceeded expectations, the company failed to build momentum for stock. 

Coughlin told investors the retailer is “executing its strategy” despite economically challenging times.

“We remain confident in our unique 360-degree pet wellness offering delivered through our core pillars of services, differentiated merchandise, and competitively advantaged omnichannel capabilities, all powered by our incredible Petco partners.”

For 2023, Petco forecasts a net revenue benchmark of $6.15 billion (€5.7B) to $6.27 billion (€5.81B).