Petco Health and Wellness Company (NASDAQ:WOOF) reported first-quarter earnings that beat Wall Street’s expectations and raised their full-year forecast.
In the quarter, Petco reported net income of $7.56 million, or three cents per share, compared with a loss of $31.2 million, or 15 cents a share, a year ago.
Excluding items, the company earned 17 cents per share. Analysts had expected earnings of nine cents per share.
Total revenue grew by 27% to $1.41 billion from $1.11 billion a year ago, beating Wall Street’s expectations of $1.27 billion.
This is the company’s second earnings report after going public again in January.
The pet retailer experienced growth during the pandemic thanks to 3.3 million pet adoptions in 2020, Petco’s CEO Ron Coughlin said in March. The company anticipates it will continue to benefit from this growth in the coming years as consumers take care of their newly adopted pets.
The shift in people moving from cities to the suburbs also could help fuel growth as the company expects its 1,500 stores will give it a competitive advantage over online retailers like Chewy (NYSE:CHWY)
Petco is also developing its online business. Its digital sales rose 90% in the fourth quarter.
To meet demand at the beginning of the pandemic, the company tripled the number of ship-from-store locations and partnered with DoorDash in December to offer same-day deliveries.
WOOF shares gave way 60 cents, or 2.3%, to $25.14.
